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SC Gov. Sanford supports House bill adding 30 cent per pack tax on cigarettes

web posted April 27, 2007
COLUMBIA – Governor Mark Sanford came out in support of a SC House of Representatives Thursday for their plan to cut both income taxes and grocery taxes without raiding the Medicaid program. On Wednesday the House approved a 30-cent per pack increase on cigarettes in order to fund an equal cut to the grocery tax. A similar plan was proposed earlier in the year by Gov. Sanford, but with the cigarette tax offset going toward income tax relief instead. The House budget also provides for more than $80 million in income tax relief.

By contrast, the Governor said, roughly 30 percent of the Senate's grocery tax cut comes from raiding the Medicaid program, which provides healthcare to South Carolina's neediest residents. The Senate budget also doesn't provide for a dime of income tax relief.

"I'd give real credit to the House not only for their commitment to cutting taxes this year, but also for their commitment to doing so responsibly," Gov. Sanford said. "The House has shown that what we've been saying is true - with $1.3 billion in new dollars coming into Columbia this year, there's no reason in the world we can't cut both income taxes and grocery taxes.

The Senate wants to fund things like green bean museums while snatching money from a reserve fund set up to provide healthcare to our neediest residents Gov. Sanford said adding there have been some real heroes in the Senate with regard to watching out for the taxpayers - like Senators Ryberg, Campsen, Verdin, Grooms and Bryant – “it's very disappointing that a body controlled by people who purport to be Republicans are this careless with the state's spending. I'd urge conservative allies in the Senate and the House to continue pushing for more in the way of tax relief in this legislative session," Gov. Sanford said.

Despite $1.3 billion in new money coming into Columbia this year, the Senate is only returning less than four percent of that money in legitimate tax relief to hard-working South Carolinians. The governor's spending plan called for $205 million in income tax relief, while the House's spending plan called for more than $80 million in income tax relief, in addition to now funding a $107 grocery tax cut Gov. Sanford said.

Under the new tax, if approved, a pack of cigarettes would rise to over $4 a pack hitting the poor and lower to middle income populations hardest. Statistically they make up the largest number of smokers but yet are to be the object of the tax savings they are paying additional taxes to support.

  




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