This is a printer friendly version of an article from
www.goupstate.com
To print this article open the file menu and choose
Print.
Back
Article published Apr 10, 2005
Senate's tax-cut plan represents a valid first step toward the
governor's overall goal
State House members and the governor
should embrace the Senate's income tax reduction plan even though it differs
from their own.Gov. Mark Sanford has pushed his plan to gradually reduce the
state income tax rate from 7 percent to 4.8 percent. His plan would apply to all
individuals and businesses. The state House approved a bill that embodied his
plan.But state senators were afraid of the breadth of the governor's plan and
the amount it would remove from state revenues. They have passed a narrower
bill.Last week, the Senate approved a bill that cuts the tax rate for small
businesses to the 5 percent rate that larger corporations pay.House members and
the governor should focus on the similarity rather than the differences between
their plans. Both reduce the state income tax. Both would spur growth in the
state's economy and would create jobs.Sanford and House members are not likely
to get a greater income tax cut from the Senate. They should be happy that they
were able to convince the Senate to consider an income tax cut and pass the
measure they are able to obtain.The governor's plan was always to gradually
reduce the income tax. Instead of starting with a broad but small reduction in
the tax rate, the Senate is starting with a greater reduction in the rate but
targeted toward a select group of taxpayers.It is still a first step toward the
overall goal set by the governor and adopted by the House. If the economy
continues to grow, the General Assembly can consider a measure next year to
lower the income tax rate for individuals.In the meantime, a tax cut for small
businesses will improve the business climate in the state and lead to greater
rates of success for small businesses, which serve as job creators.It would be a
mistake for House leaders or the governor to insist on their plan and lose the
chance to pass the Senate's measure, ending up without any income tax
reduction.This is the wrong time to battle over differences between the bills.
Sanford, House leaders and senators have every right to celebrate their common
ground, enact the Senate bill and congratulateeach other on cutting taxes and
spurring the state economy.