‘Things have to
change’ Governor calls for ‘real
reforms’ in tax rates, education By AARON GOULD SHEININ Staff Writer
Gov. Mark Sanford challenged lawmakers Wednesday to cut the
state’s income tax and approve his education initiatives, taking
“the road less traveled in politics” to make “real reforms and
changes in the way things have been for too long.”
The first-term Republican made those challenges the major theme
of his third State of the State address, delivered to a joint
session of the General Assembly.
He urged lawmakers to cut the state’s income tax to 4.75 percent
from 7 percent and approve tax credits for parents to send their
children to better schools, whether private or public.
Sanford reiterated what he called the “underlying precept of this
administration,” which is “to thrive economically and academically.”
But to do that, he said, “things have to change.”
For the first 20 minutes of the nearly hourlong speech, there was
some question as to whether Sanford was giving a State of the State
or a State of the Union address.
Much of the first 10 pages of the 24-page speech dealt with
national and international issues, from the dangers of inflation to
the emerging strength of markets and low-cost work forces in China
and India.
The global aspect of the speech prompted one Republican lawmaker
to scribble across the front of his copy of Sanford’s remarks: “Is
this a presidential speech?”
But Sanford soon enough returned to more familiar terrain. He was
generous and effusive in his praise for certain lawmakers and state
officials — Democrats as well as fellow Republicans.
He also gave credit to his own administration for developing the
proposals he believes are needed to lead the state into a prosperous
future.
Nowhere does the state struggle more than in education, Sanford
said, despite tremendous investments of cash and the efforts of
teachers, principals and administrators.
“I won’t chronicle all of the challenges to our educational
system,” Sanford said. “We know they’re there, but I would ask, ‘Do
we?’”
Part of the answer is money, Sanford said, “but a bigger part of
the solution lies in market-based reforms to the system itself.”
His plan for those reforms is the tax credit bill, dubbed by
supporters as the Put Parents in Charge Act. Similar plans have
worked well in such major cities as Milwaukee, Sanford said.
In Milwaukee, he said, families shed “tears of joy” when their
children are accepted into the school choice system. “Can you
imagine tears being shed because you got into the public school in
Allendale or Marion?”
State Education Superintendent Inez Tenenbaum, a Democrat, called
that remark “a cheap shot” that minimizes the hard work and progress
in those rural school systems.
When Put Parents in Charge comes up for a vote in the House and
Senate — if it makes it that far — it will be a “gut-check vote,”
Sanford said, “a time for choosing, I believe, on the degree to
which we care about not only making changes so that our state can
compete on the international playing field, but, more importantly,
about making changes that can transform people’s lives.”
The bill has been introduced in the House but will not come up
for debate in the Ways and Means Committee until at least March.
Republicans in the House and Senate have given it a tepid reception,
and its prospects are anything but assured. Democrats are almost
universally opposed.
On the income tax reduction, Sanford outlined three reasons it
would help create jobs in South Carolina:
• More small businesses would be
created because many of them are not corporations and therefore do
not pay the lower 5 percent corporate rate. Instead they pay the top
7 percent rate.
• Lower income taxes would attract
more retirees, “a huge economic engine” in many parts of the
state.
• More companies would seek to
bring their headquarters here, not just a plant or distribution
center.
“And so it is again a time for choosing, between a tax system
that holds us back and a tax system that allows us to better compete
with the rest of the world,” he said.
Sanford is likely to have more luck with his income tax proposal.
The House could give it final approval as early as this week. Its
future in the Senate is less clear, however, because many senators
have been pushing for property tax relief instead.
Reaction to Sanford’s address was mixed. Most Republicans praised
the speech, although Sen. John Courson, R-Richland, said Sanford
will have to “learn to navigate swamps filled with alligators” to
get his agenda through a skeptical General Assembly.
Senate Minority Leader John Land, D-Clarendon, said Sanford likes
to believe “he is changing the mind-set” of the General Assembly,
but it “comes at the expense of the problems facing our state, and
it ignores the real values we represent.”
But House Speaker David Wilkins, R-Greenville, gave the governor
high marks for espousing many of the same beliefs as Republicans in
the House. From changes to make it tougher to file lawsuits to
income tax reduction to school choice — but not necessarily Put
Parents in Charge — they are on the same page, Wilkins said.
Reach Gould Sheinin at (803) 771-8658 or asheinin@thestate.com. |