By J.C. LEXOW Staff writer
Like a combination shot in billiards, a stroke of Gov. Mark Sanford's pen yesterday pocketed a tax break for some South Carolinians and propelled him to Aiken Friday morning to talk about giving the same to the rest.
The bill signed by Sanford Thursday will reduce the tax rate on small business profits over the next four years to equal that imposed on large businesses. The current tax on small businesses is set at 7 percent. Large businesses pay 5 percent.
"That doesn't make sense because if you think about it, the backbone to the economy in South Carolina is small business," Sanford said during a visit to Aiken Office Supply and Book Shop on Whiskey Road.
"She's got to compete with a large corporation down the street that's taxed at 5 percent," he said of store owner Margaret Holley.
On the verge of celebrating the 40th anniversary of opening her store, Holley said the 2 percent tax cut was welcome.
"Paying less taxes you can do some expanding," she said.
Sanford said he also wants the same tax break for individuals.
"We think it's now important to finish the job. That's what the bottom line is: Taxes and employment. Those are the people who are going to spend the money," Sanford said.
He also cited the tax rates imposed by other southeastern states, saying South Carolina is at a "competitive disadvantage." He said his goal is to emulate Florida by "completely eliminating (state) income tax."
Officials project the state will take in more than $600 million in new revenue during the next fiscal year.
Sanford said the government would find some way to spend it, but he'd rather see the money in the hands of businesses and individuals.
"The private sector is better at allocating resources," he said.
State Representatives Skipper Perry, R–Aiken, Jim Stewart, R–Aiken, and Roland Smith, R–Warrenville, and Sen. Greg Ryberg, A–Aiken, stood by Sanford at the appearance, and received his praise for supporting his proposal.