By J.J. Darby
Thomas Paine, the author of "Common Sense" and other pamphlets
during the American Revolution, wrote: "When a government is just,
taxes are few." He believed the American Revolution was born of
necessity because of heavy taxation. Only a revolution could create
a government "less expensive and more productive."
Like Thomas Paine, I believe taxes that grow faster than the
ability of taxpayers to pay are reprehensible. So do others. The
Coalition Against Unlimited Spending, which is made up of seemingly
disparate groups, was born of necessity. Members include the South
Carolina Manufacturer's Alliance, the South Carolina Chamber of
Commerce, the South Carolina Association of Taxpayers (and its local
affiliates), NoHomeTax.org and South Carolinians for Responsible
Government.
Our tax burden has grown approximately 10 percent per year over
the past decade and is now among the highest in the nation. This
trend shows no signs of slowing down. The unfortunate truth is that
local taxing entities (which include city government, county
government and school districts) have undermined the intent of both
the 1995 and 2006 property tax relief laws, resulting in an overall
tax burden that South Carolina businesses and taxpayers cannot
afford.
Despite these two legislative efforts to reduce our property
taxes, individuals and businesses are paying more to government via
increased millage, local option sales taxes and higher fees.
According to a recent study by the South Carolina Policy Council,
all but two counties have seen the total county, city and school
district millage increase since statewide property tax relief was
passed in 1995. Additionally, 28 out of the 29 counties that
implemented a local option sales tax now have a higher millage rate
than before the local option sales tax was increased. And already,
close to 20 school districts have announced plans to increase their
budgets in response to this year's tax relief plan.
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Too often, citizens do not realize just how much their tax burden
is increasing. Permit charges, fees and small millage hikes are done
with little to no public input. All taxpayers know is that somehow,
they are spending more money on government than they used to, and
have less left over for themselves.
Businesses are feeling the crunch, too, via tax shifts. The
business community has said all along that shifting the tax burden
will not result in a better deal for taxpayers. South Carolina
businesses need capital to compete. We need to expand our existing
companies and attract new ones to our state, which is made more
difficult if our tax burden continues to grow. Higher tax burdens
make manufacturing plants less competitive, and in this global
economy, the tolerance for high taxes simply no longer exists, if it
ever really did. The growing tax burden in South Carolina is
seriously limiting the ability of businesses to expand, create new
jobs and locate here.
For these reasons, CAUS is calling for substantive constitutional
caps on local spending. We believe these caps should be based on
statewide population growth plus personal income growth, and should
only be exceeded in strict emergency situations as declared by the
governor (such as a hurricane or other natural disaster).
Taxpayers have already seen what happens when relief is given by
our General Assembly -- it is snatched away by the local
governments. Without substantive caps, citizens and businesses will
be stuck with a higher sales tax and a higher property tax bill.
We appreciate the good faith efforts of leaders in the General
Assembly to pass tax relief legislation. However, the only way to
protect taxpayers is to insist that government live within its means
and not grow at a faster rate than income levels and population. We
hope leaders in the General Assembly will move quickly to support
constitutionally mandated spending caps to stop local governments
from undermining the tax relief that citizens were promised.
Ours is truly a historic coalition in which business groups and
taxpayer advocacy organizations have come together for the first
time in recent memory. We are unified in support of the principle of
real tax relief and unified in support of passing local spending
caps.
No one wins when businesses and consumers have less money to
spend. CAUS will be working hard to help solve the dilemma of an
ever-increasing tax burden. We are committed to working with the
General Assembly to ensure the citizens of South Carolina receive
the tax relief they deserve, the business community is protected and
that runaway spending is kept in check.
This effort is critical to the future of South Carolina -- a
future in which the Coalition Against Unlimited Spending plans to
play a major role.
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