(Columbia) Nov. 4, 2003 - Governor Mark Sanford
stopped at Thermal Engineering Corporation, a Columbia
company that makes state-of-the-art grills, on Tuesday
afternoon as part of his "Jobs and Growth Tour."
The governor is hoping South Carolina will warm up to
his call for higher cigarette taxes and a corresponding
15% drop in the state's income tax, "One of the keys to
helping more small businesses grow and do well in a
state like South Carolina as they compete with states
all across this nation is a change in the income
tax."
Sanford was campaigning for a 61 cent a pack tax
increase on cigarettes a few months ago, because he said
the money should be used to pay for Medicaid. He now
says the money should be used to stimulate job creation.
Sanford also says he had to switch strategies after
the tax plan hit a roadblock in the House, "The key is
to say, 'Alright, we've got an objection, let's try and
change something so that we solve the problem.' What we
did is we changed this proposal so that it dealt with
what the House wanted."
Some experts dispute Sanford's claim that income
taxes have to be cut to spark new jobs. A study by the
Raleigh-based John Locke Foundation ranked factors that
reduce North Carolina's competitiveness in economic
development.
State and local taxes were least likely to influence
a company's decisions and were far outweighed by
recreational opportunities, airport, rail and port
access, highways, schools and regulatory burdens.
A recent study by USC economists suggest South
Carolina has a moderate tax burden.
Democrats, like Rep. John Scott (D) Richland, say
Sanford won't get his plan through the General Assembly,
"The votes are not there to increase cigarette taxes.
Most of these guys have signed a no tax increase
pledge."
Sanford also has to convince people like Thermal
Engineering employee Gary Rippon, "Why penalize us on
the only things that we might find recreational. It rips
me off man."
Thursday Sanford will spend a third day touting his
new tax plan around the state. He is scheduled to visit
Gaffney, Greenville and Rock Hill.
By Jack
Kuenzie
Posted 6:55pm by BrettWitt
