After more than 12 hours of budget debate, Democrats late last night launched into a proposal that would suspend all tax credits for one year, until the Tax Realignment Commission(TRAC) can submit a complete report. House Republicans now agree with Democrats that TRAC should also review Act 388, which in 2006 shifted the state’s revenue base from owner-occupied housing to sales tax.

That amendment failed 81-33.

That was followed by a 72-42 defeat of Chesterfield County Democrat Ted Vick’s tax shift proposal, which he said would take the state’s dependence away from an unstable sales tax and produce $614 million from property taxes and put $104 million into education. Property valued at $250,000 or less would pay no taxes. Those with more expensive properties would pay only on the home’s value above $250,000.

Vick said he and many other House members made a big mistake when they voted for Act 388.  He said Act 388 has caused a 27 percent reduction in state revenue over the last three years.  Vick says he meets regularly with the state’s chief economist about revenue issues, and he believes the problems are not the fault of the Board of Economic Advisers, but that the General Assembly is to blame.

(Vick on tax MP3 7:34)
Vick on tax

[Read more...]

The South Carolina House passed over numerous cigarette tax increases Wednesday night.

Spartanburg Republican Joey Millwood pushed to strike the 30-cent per pack tax already in the budget, put there weeks ago by the Ways and Means Committee. The House killed Millwood’s attempt, 106-12.

Charleston Republican Leon Stavrinakis and Florence Republican Kris Crawford, a medical doctor, introduced a bi-partisan plan that appeared to have a lot going for it, but failed on a 68-42 vote. The $1-per pack increase that would have offered $200-$300 million for health care and income tax relief, and would have sent the remaining 10 percent to any education shortfall.

Dr. Crawford said that as a physician in emergency rooms he had cared for children and teens who smoked, children from other states who picked up the habbit because tobacco was more affordable in South Carolina.

Stavrinakis told lawmakers that if they were planing to raise the cigarette tax 30 cents, they might as well go to a dollar.

(Stavrinakis on tobacco tax MP3 1:53)
Stavrinakis on tobacco tax

[Read more...]