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Posted on Wed, Mar. 03, 2004

A QUICK SPIN


What’s going on around the State House:

INCOME TAX CUTS

Gov. Mark Sanford’s plan to cut income tax rates for half the state’s residents cleared the House Ways and Means Committee on Tuesday with a 19-4 vote.

It didn’t get through without some criticism, mostly from Democrats who question the benefits and the wisdom of the Republican governor’s centerpiece tax plan to lower the top income tax rate to 4.75 percent from 7 percent over 10 years.

Who gets the breaks remains a key concern. The plan reduces only the top tax bracket and will not reduce taxes at all for half the state’s taxpayers, the state’s chief economist has said.

Sanford is “robbing from poor people to give to rich people,” said Rep. Ken Kennedy, D-Williamsburg. Legislators have to serve “a long time to call giving people their money back robbery,” said Rep. Jim McGee, R-Florence.

TAX COLLECTION FEE

A bill that forces people and businesses to pay a collection fee for overdue taxes cleared a Senate Finance subcommittee Tuesday. It calls for a 20 percent collection fee on taxes that are 120 days overdue.

The Legislature approved the fees last year as part of the budget. That temporary law change generated $1.2 million. The bill would make the collection fee permanent.

Money collected would help finance South Carolina Business One Stop, a program to allow businesses to register for various licenses online and avoid trips to different agencies. What’s left over would be used by the Revenue Department for its operations.


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