Posted on Sat, Mar. 15, 2003


Sanford tax plans stuns Republicans


Associated Press

Gov. Mark Sanford's proposal to increase the state cigarette tax to fund Medicaid will be a tough sell to his fellow Republicans.

Most thought the issue had been settled last week after they signed off on a compromise to fund Medicaid by refinancing the state's tobacco settlement bonds.

Republicans, who thought Sanford supported their plan, were irate Friday after the governor announced that he supported a raising the state's cigarette tax as long as it's tied to a bill that would reduce the personal income tax rate during the next 15 years.

Sanford wants to raise the state's cigarette tax to 53 cents-a-pack from seven cents-a-pack, which is one of the lowest in the nation.

"This is the first I've heard of it," said Sen. John Courson, R-Columbia, a member of the Senate Finance Committee.

Courson said Sanford should have had the two tax-writing committees study the proposal and offer feedback.

"People are wearing their feelings on their shirt-sleeves, but they have a couple of weeks to get over it," said Rep. Bill Cotty, R-Columbia, a member of the House Ways and Means Committee, who supports the governors tax proposal.

Cotty told his GOP colleagues that "Mark wasn't elected by just Republicans. He has got to step forward and lead this state."

The governors first task, Cotty said, will be to sell his plan to House Speaker David Wilkins, R-Greenville.

Wilkins said he remains firmly opposed to a cigarette tax increase, but wants to learn more about Sanford's proposal.

Democrats tended to look with favor upon Sanford's plan.

"We appreciate his willingness to understand the need to find a long-term funding solution for Medicaid," said state Rep. Joel Lourie, D-Columbia, "and not just a continuation of the Band-Aid approach we've been using."

Senate Democratic Leader John Land of Manning predicted Sanford will have problems with his party, many of whom have boxed themselves in by signing the no-tax pledge.

Don Weaver, president of the South Carolina Association of Taxpayers who leads the effort to get lawmakers and other elected officials to sign the pledge not to raise taxes, was disappointed when he heard of Sanford's proposal.

"The governor needs to find another way to fund Medicaid," he said. "The House leadership stuck its neck out to fund Medicaid, and now we get this news. It leaves House members in a very precarious position."

Information from: The State





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