News and Press Releases for June 2007

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6/05/2007

Governor Sanford, Speaker Harrell Call for Income Tax Cut

Governor and GOP House Members Call for Cut to Top Marginal Income Tax Rate

Columbia, S.C. - Governor Mark Sanford today joined with House Speaker Bobby Harrell and Republican House members to call for cutting the state's top marginal income tax rate this year, using part of South Carolina's record budget windfall.

Budget writers are working with over $1.5 billion in new revenue this year, above and beyond the $6.3 billion spent by state government last year. The House budget calls for $81 million in net income tax relief - part of a three-year plan to cut the top marginal rate from 7 percent to 6.4 percent. Meanwhile, the Senate has only dedicated $23 million toward net tax relief, with no plans for future cuts to the top rate.

"Whether it's been the idea of paying for past promises before we make new ones or the idea of holding the line on spending, we've talked about sticking to a number of principles when it comes to our state's budget - and one of the most important of these is the idea of sending a dividend back to taxpayers," Gov. Sanford said. "To that end, I'd give real credit to the House for committing to the idea of sending some of these new dollars back to the people who pay for government. Marginal income tax rates matter when it comes to making our state more competitive, which is why I think the House plan represents an important down payment and a good first step toward substantive tax relief for South Carolinians."

"This year we have a unique opportunity to provide significant tax relief for all the citizens of our state," Speaker Harrell said. "With our record surplus this year, we can cut income taxes and move closer to eliminating the sales tax on groceries. Different plans have been suggested for cutting the income tax, but none will have the job-creating effect the House's income tax cut provides. That is why we are fighting so hard for the House's version of this tax cut and the economic impact it will have on our state."