If we South Carolinians really think that the 5-cent sales tax is
the best way to pay for government services, why do we insist on
undermining it? A recent report for the legislative Joint Committee
on Taxation found that we rely on the sales tax to pay 40 percent of
the cost of state and local government - about 7 percent above the
national norm. Yet as our recent three-day, sales-tax-free,
back-to-school spending orgy illustrates, we take delight in
ensuring that the sales tax brings in too little money to pay for
public needs.
Then there are all the exemptions that legislators have slapped
onto the sales tax. And thanks to the recession and galloping
unemployment, S.C. consumers have reined in spending on taxable
items. And we keep ordering taxable items off the Internet but
evading the tax on them. No wonder S.C. revenues actually decreased
this year - a rare, gloomy situation. Yet we carp incessantly at
increasing reliance on the income tax and the property tax to cover
public needs. The sales tax remains our "best" idea for fixing
things and paying for new programs.
Indeed, one "tax-reform" proposal in Columbia would abolish the
school property tax and raise rates a few pennies to pay the entire
cost of public schooling with sales-tax revenue. Legislators are
said to take this proposal so seriously that it actually may pass
next year. Puh-leeze!
We're not saying that legislators should raise other taxes to
compensate for the weaknesses of the sales tax. Tax changes should
be considered only as part of comprehensive state tax reform that
includes intelligently targeted spending cuts.
State government can and should be cut further. Somehow through
the years, South Carolina - a relatively small state with a lot of
poor residents - has amassed a huge pool of state employees and
accepted a huge array of responsibilities.
For folks who claim not to like much government, we sure have a
lot of it. We just don't want to pay for it. On one side of this
equation or the other, something's got to give.