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Income tax reduction showdown begins quietly

BY CLAY BARBOUR
Of The Post and Courier Staff

COLUMBIA--Gov. Mark Sanford got his wish Tuesday as the state Senate took up his controversial income tax reduction plan -- sort of.

For months, the governor's plan to lower the state's highest income tax bracket from the current 7 percent to 4.75 percent over a 10-year-period has crept through the legislative process.

The lukewarm reception to Sanford's top legislative priority irritated the governor, who weeks ago began calling on senators to deal with his agenda quickly.

Last week, 24 of 27 Republican senators signed a paper pledging support for the governor's plan. They said Tuesday would be the day for an income tax showdown. And, the senators warned, supporters of the plan should be prepared to fight through the night for passage. However, on Tuesday, with several senators on leave, the showdown ended before sundown.

"They won't tell you this," said Sen. John Land, D-Manning, "But the Republicans hope we win this thing. They know if this passes, it will put state government in a straight jacket until 2014."

Land led a coalition of Democrats Tuesday who used legislative procedures to avoid talking about the actual bill.

The day started with Sen. Brad Hutto, D-Orangeburg, fighting for an amendment that dealt with video bingo. His amendment was ruled out of order.

Land followed Hutto with an amendment to alter the governor's plan, doing away with the tax cut for individuals, but leaving it for small businesses.

Both measures were intended solely to prevent the Senate from dealing with the governor's plan. It worked, with the session adjourning at 7 p.m.

According to Land, Tuesday proved the Republicans' resolve to fight for the governor's plan is simply not present in the Senate.

"And we're just getting started," he said.

Senate Republican leadership said support for the plan is still there, and many predict a showdown today.

"It's clear that this will be an issue that could lock us down," said Senate President Pro Tem Glenn McConnell, R-Charleston. "It's a square-off, and we are going to have to fight it out."

Sanford, who was waiting outside the Senate chamber Tuesday, said he is not worried.

"This is a multi-step dance," he said. "We expected several delay tactics, so I think we are fine."

Sanford's plan, amended in the Senate Finance Committee, would lower income taxes by .225 percentage points a year for 10 years.

The tax cut would not occur unless the state's general fund grows by 3 percent or more, based on projections of the state Board of Economic Advisors.

Originally, Senate Republican leaders said they would hold off dealing with the controversial issue until the last week of the session. To do otherwise, they feared, would bring the rest of the session to a grinding halt.

On Thursday, a dozen members of the Senate Republican Caucus announced their intention to bring the issue to the Senate floor by early next week.

This, according to Sen. David Thomas, R-Greenville, would be accomplished by attaching the governor's plan to a Senate bill already in the S.C. House. It would allow the bill to return to the Senate and go directly into the "box," which means it would circumvent the calendar and be taken up first.

A similar method was used to get primary seat belt legislation on the Senate floor. Rep. Joel Lourie, D-Columbia, attached that legislation to a hearing-impaired logo bill sponsored by Hutto. The hearing-impaired language was removed from the bill, leaving only the seat belt issue on the document.

But on Tuesday, Land made it clear why Democrats oppose the governor's bill.

"You would have voted to lock government down for the next 10 years for a measly $100 million," he said. "I don't care whether it was bob-tailed or no-tailed. It doesn't matter. It will destroy your state."

Clay Barbour covers the Statehouse. Contact him at (803) 799-9051 or at cbarbour@postandcourier.com.plan, doing away with the tax cut for individuals, but leaving it for small businesses.