Gov. Sanford Calls for Budget Writers to Keep Eye on Taxpayers
Gov. Sanford Calls for Budget Writers to Keep Eye on Taxpayers
GOVERNOR SAYS BUDGET DOESN'T DO ENOUGH TO STIMULATE ECONOMY
Gov. Mark Sanford today urged Senate leaders to reconsider their decision to spend almost every dollar on new projects and programs, rather than provide tax relief to the hardworking citizens of South Carolina. Gov. Sanford pointed to a recent study that ranked South Carolina 5th in revenue growth over the past three years - with more new government revenue coming in than many other states that are considering cutting taxes and returning a dividend to the taxpayer.
"If we want to see this kind of continued growth in our economy that's causing more money to come into Columbia, we can't keep growing government at the expense of the private sector," Gov. Sanford said. "Too many people in the Senate seem to have forgotten the painful lessons learned a few years ago when the state increased spending by a billion dollars in two years' time. Other states understand that returning more money to the private sector is ultimately what stimulates economic growth, and as one editorial recently said, 'revenue booms don't last forever, while the spending programs created during the good years nearly always do.'"
At least six other states whose revenues have grown slower than South Carolina's over the past three years are currently considering tax cuts. Leaders in Arizona, Massachusetts, and Oklahoma - tied for 26th in revenue growth - are pushing for a 20 percent income tax reduction, a rate reduction from 5.3 percent to 5 percent and a rate reduction from 6.25 percent to 4.9 percent, respectively. Oregon, ranked 20th, is planning to return $700 million to taxpayers. Utah, ranked 15th, is considering using a $344 million surplus to cut income and food taxes. In New York, ranked 7th, Governor Pataki has proposed using a $2.7 billion surplus for income and corporate tax reductions.
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