| Medicaid could delay strategies AIKEN - As South Caroli na Gov. Mark Sanford continues his 12-city tour to promote his tax reform and economic stimulus plan today, another top Republican has tied a conditional string around the governor's call for a 68-cents-a-pack cigarette tax coupled with a cut in the state's income tax rate. When the Legislature opens a new session in January, lawmakers won't consider any revenue increases until South Carolina's Medicaid system is reformed, House Speaker David Wilkins, R-Greenville, said Wednesday. With the state facing budget deficits of as much as $500 million next year, Mr. Wilkins said the timing might not be right to slash the state's income rate from 7 percent to 5.9 percent, a move Mr. Sanford said is necessary to make South Carolina more competitive for new jobs that will increase its tax base. "We in the House are totally for growing the pie," Mr. Wilkins said. "The question is how do you do it and when do you do it." Reforming the state's Medicaid system will take priority over any discussion on taxes, said Mr. Wilkins, a position he shares with House Ways and Means Committee Chairman Bobby Harrell, R-Charleston. "We've got a Medicaid system that's out of control and we need to get a handle on it," Mr. Wilkins said. "As far as a cigarette tax, the House spoke very clearly last year that we won't do it unless we have Medicaid reform. Once you raise the cigarette tax, then you've got no leverage for Medicaid reform." Other portions of the governor's plan stand a better chance of quicker legislative success, Mr. Wilkins said. "The proposal is multi-faceted and we look forward to working with him and finding common ground," he said. "There's a lot of pro-business facets of his plan that we'll wholeheartedly support." Cutting the state's income tax and luring more jobs to South Carolina will broaden the state's tax base and relieve pressure on the Medicaid system, said Will Folks, the gubernatorial spokesman. "More jobs means more money to fund core programs like Medicaid and fewer people on the Medicaid rolls," he said. "That's the equation - more jobs equals more people off the Medicaid rolls." The governor also wants to end the sales-tax exemption for lottery tickets. Reach Jim Nesbitt at (803) 648-1394.
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