(Columbia) Nov. 4, 2003 - Governor Mark Sanford wants
to impose new taxes on both cigarettes and the lottery.
He wants to use the proceeds to raise $222 million in
revenues and roll back South Carolina's income tax by
15%.
Sanford wants to increase the cigarette tax to 68
cents a pack, the national average. The state's
seven-cent tax is fourth-lowest in the nation
The governor, in an outline sent to lawmakers, says
he's trying to cut the tax "most damaging to jobs and
economic growth in equal exchange for ones that are the
least damaging to jobs and economic growth."
Sanford is taking that message across the state in a
three-day series of appearances and news
conferences.
The proposed cigarette tax hike is not unlike one the
governor was trying to push through the General Assembly
earlier this year. One major difference this time is the
money would not be used to pay for Medicaid.
Sue Berkowitz is with the Appleseed Legal Justice
Center and one of many groups trying to fund Medicaid
with higher cigarette taxes, "I am really concerned that
if we do not find a dedicated funding stream of new
money that we will not be able to fund the program just
at the level it's at right now."
Some Democratic lawmakers, like Rep. Joel Lourie (D)
Richland, are already criticizing the governor's plan,
"To simply trade cigarette tax dollars for income tax
dollars does nothing to help with our crisis. We're
still going to have to come in and make some pretty
drastic cuts if we don't identify new sources of
revenue."
Another part of the Sanford proposal extends the
state's 5% sales tax to lottery tickets. Smokers who
also play the lottery, like Iris Cochran, say they'll be
hit twice with higher taxes, "Everybody has a habit. I'm
quite sure I'm not the only smoker that's around here.
It's just ridiculous to go up on the cigarette sales
tax."
Chris Hester is a smoker and doesn't object to the
higher tax, at least in principle, "I don't mind paying
more as long as I feel the money is going to something
useful for the state."
Not every Democratic legislator is lining up to blast
the Sanford plan. Senator Darrell Jackson (D) Richland,
told WIS on Tuesday he could support the governor's plan
as long as another source of funding for Medicaid is
provided in the budget. Jackson says he has no problems
raising taxes on cigarettes or the lottery, especially
if those taxes lead to lower
consumption.
Sanford
will continue to talk about the plan Tuesday in the
Midlands and Thursday in the
Upstate.
The issue is likely
going to be the subject of considerable disagreement
when lawmakers meet next year.
By Jack
Kuenzie
Updated 7:11pm by BrettWitt
