Sanford pushes tax reduction plan on state trip
Governor says move would create jobs, help small businesses, boost economy BY WARREN WISE Of The Post and Courier Staff Gov. Mark Sanford crisscrossed the state Monday to urge voters to call their state senators and ask them to vote today for his income tax reduction plan. "It's do-or-die time for income tax relief," Sanford said at The Muhler Co. in North Charleston, part of a three-city swing to tout his job-creation plan before what could be this week's crucial vote in the state Senate. Lawmakers have two weeks left in this year's five-month legislative session. Sanford wants lawmakers to pass his proposal to lower the state's income tax rate from 7 percent to 4.75 percent over 10 years, a move he said would stimulate the economy and create new jobs. The state has lost more than 3,600 small businesses and more than 41,000 jobs in the past few years. Sanford said he believes slashing the tax rate would help small businesses that usually don't qualify for the tax cuts received by large industries. The governor said 15 states that lowered income taxes have an 18.6 percent rate of job creation and a 34 percent spike in personal income while 10 states that raised incomes taxes saw a 6.8 percent rate of job growth and a 23.3 percent rise in personal income. "We're currently at the 10-yard line looking to get this critical economic development bill across the goal line for thousands of small businesses across South Carolina," Sanford said. "That's why I'd encourage anyone who cares about creating new jobs, attracting capital investment, growing small businesses and stimulating economic growth here in South Carolina to call their senator and ask them to bring this important proposal to a vote." The governor's proposal passed the House earlier this year and rests with the Senate, where bills are much harder to pass because one senator can block legislation. "There's a point beyond where you are not deliberative. You are obstructionist," Sanford said. "It's very important (today) that obstructionism doesn't reign, that they are deliberative, they have the debate, a lengthy debate, maybe even a couple of days of debate, but at the end of the day, they are able to bring it to a vote so people can vote yes or they can vote no on this income tax proposal." Most Senate Republicans have signed onto the measure, but some said that Democrats will filibuster against the bill, effectively killing it in the waning days of the session. Sen. Robert Ford, D-Charleston, said Democrats might support a different version of the bill. "In its present form, all I see is somebody having somebody believing they are getting something when they are not," he said. The tax plan would go into effect only after the state deficit is paid off and state growth hits 4 percent. The last time growth was that strong was 2000, though the state passed that mark in all but one year of the 1990s. Henry Muhler Hay, president and owner of The Muhler Co., which started with two employees in 1991 and now has 70, supports the governor's proposal because his window company recruits employees from across the nation and one of the issues they ask about is the state's income tax rate. "It's a nice place to live," Hay said, "but if you are eaten by taxes, it's not so nice." Hay said he believes cutting the tax rate would allow his North Charleston company, which also sells sunrooms and shutters, to reinvest more money into the business and hire more employees. The governor also stopped Monday in Florence and Aiken.
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