A panel commissioned by S.C. Gov. Mark Sanford’s top economic advisor has proposed raising taxes on South Carolina businesses to cover a $750 million (and counting) debt to the federal government created by record unemployment payouts.
Before it’s all said and done, South Carolina could be facing a $2 billion shortfall – which Sanford’s advisor evidently wants to pass on to state businesses already struggling to survive one of the worst recessions in American history.
Under the plan endorsed by Board of Economic Advisors (BEA) Chair John Rainey’s panel, businesses would have to pay roughly $250 and $570 per worker to dig the state’s unemployment benefit trust fund out of its current hole.
Sound familiar?
This is the crisis we warned people about back in March – or several months before state lawmakers passed a bloated, $20.7 billion state budget that funded plenty of pork but did absolutely nothing to address this gaping hole.
Additionally, the budget’s general fund has also been cut by nearly $200 million in the last three months – with more cuts likely to come.
So in other words, confronted months in advance with this “ticking time bomb” of accumulating state government debt (and an increasingly dire revenue outlook), lawmakers chose to ignore the problem – using federal “stimulus” funds to protect their taxpayer-funded fiefdoms instead.
It didn’t have to be this way.
Under an alternative state spending plan proposed by S.C. Senator Tom Davis (R-Beaufort), $200 million would have been set aside in the current budget for the state’s insurance reserve trust fund – i.e. $200 million which obviously wouldn’t have then had to come directly out of wallets of S.C. businesses (or future state budgets).
Of course, when Davis and a small group of fiscally-conservative lawmakers tried to warn their Democratic and RINO colleagues of the need to address this impending disaster, they were laughed right out of the State House.
Davis and his colleagues even took their case to the state’s mainstream media – which didn’t bite, either.
In addition to shoring up South Carolina’s unemployment reserves, the alternative budget would have also sent $2.57 billion straight to public schools to use any way they want – a record amount. Additionally, between 75-100 new State Troopers would have been added to our dangerous roads, while the state’s chronically-underfunded Department of Corrections would have been able to eliminate its operating deficit.
The best part of all? The alternative budget would have accomplished all of this without using a dime of the disputed $700 million in “stimulus” funds that dominated last session’s budget debate.
Of course, the alternative budget was defeated by the RINO-Democratic majority, with Senate President Glenn McConnell, Majority Leader Harvey Peeler and Finance Chairman Hugh Leatherman all voting against it.
“Instead of fully funding core functions and restoring some funds to the unemployment trust fund, we expanded entitlement spending with one-time money,” Sen. Davis told FITS.
Make no mistake, people … in voting against that budget, McConnell, Peeler, Leatherman and their RINO colleagues were in effect passing a massive tax increase on South Carolina businesses, which the mainstream press is now piously pointing out to everyone (seven months after we did).
Once again, way to go S.C. lawmakers.
Pic: Worth 1000
By Peale October 5, 2009 at 10:22 am
Say what you want…but Sanford nailed this stimulus mess. Now, the RINO’s that fought him then want him out.
Knotts, Bauer, Peeler, and the bunch want their man in so they can continue to spend spend spend.
By Patrick October 5, 2009 at 10:53 am
great article. however, i don’t think rainey endorsed the plan put forth by ESC
By Peter October 5, 2009 at 11:08 am
South Carolina Unemployment Trends – August 2009
South Carolina Unemployment Trends in Heat Map form:
here is a map of South Carolina Unemployment in August 2009 (BLS data)
http://www.localetrends.com/st/sc_south_carolina_unemployment.php?MAP_TYPE=curr_ue
versus South Carolina Unemployment Levels 1 year ago
http://www.localetrends.com/st/sc_south_carolina_unemployment.php?MAP_TYPE=m12_ue
By philip branton October 5, 2009 at 11:38 am
Talk about ALTERNATIVE……
We wonder why DHEC has not educated the public about….
http://news.bbc.co.uk/2/hi/technology/8290130.stm
…so much for the PEE DEE Backslappin’ with DUKE..!!!
WHY would South Carolina choose to do the right thing EVER…??? As long as the Good Ol’ Boys keep their slush flowing the same direction …WHO CARES about the citizens of this great state at large…!?!? Heck, we’ll just import smart student from OUT of state…!! We’ll charge more too boot…!!!
Sic, WOULD YOU ASK HARVEY PEELER if his brother who WORKS for Waste Management has ever looked into finding ways to not have LANDFILLS at all…!?!?! Maybe the tax revenue generated from the sale of this energy would help FUND the Alternative BUDGET…!!!! WHAT Democrat would vote against keeping a LANDFILL OPEN…??? WHAT RINO…!?!
Well, obviously all Legislators that are holding office RIGHT NOW….!!!!!
We wonder if Farmer HEATH HILL has ever discussed the ARSENIC looming in the ICE at “DIANE’s on DEVINE..??” …with ANDRE’ BAUER ?? ….with ROBERT FORD..??
http://www.postandcourier.com/news/2009/oct/05/05ashwatchweb/
BY GOD ….SIC….!!! WE …ARE…FED…UP !!!!
(SPIT…!!)
By scarlettohell October 5, 2009 at 12:10 pm
I am not sure that is what the money being paid back is for. Sic are you certain?
By philip branton October 5, 2009 at 4:09 pm
Come ON….FOLKS !!
take me out of my misery………
http://www.thestate.com/politics/story/970367.html
I get better bowel movements form a Charlequin..!!!
I have no Clyburn “CLUE” what issue this gentleman has pounded on that would benefit all citizens…!?!?!
Has he EVER called OUT a fellow DEMOCRAT…!?!? Has he ever screamed YOU LIE to Harrell…???
…or DHEC…???
or Jim REX…!?!?!
I’d rather vote for Goldie HAWN…!!!!
By No Name October 5, 2009 at 4:27 pm
Rainman is a tacit endorser by the nature of pulling the Commision together in the first place.
Wake up people …..here comes higher taxes from the SC GOP.
I have never seen an issue galvanize folks faster that being told in times of trouble that Government is raising taxes…rather than doing something about lessening costs or programs.
Keep the drumbeat up….the SCGOP is for higher taxes right now……we will see who mans up and tells why this is the case.
Sanford mistakenly beleives that he will get off the hook for correctly predicting this …..what he does not get is that we needed him to get to this place….. clean as a whistle and he gave it all up…all the hard work …for what…… a simple peice of strange….by God I hope it was something special…because he surely screwed all us when he screwed that.
By Huhhh??? October 5, 2009 at 4:40 pm
Oh, God, zoomru is here!!
By OnNoNotAgain October 5, 2009 at 5:11 pm
Yeah, blame “the Democrats and their RINO brethren …”
Sure. Whatever. As if they have a voice at all.
By Jeff Duncan October 5, 2009 at 5:13 pm
22 of us voted for the Alternative Budge Amendment offered by me in the House – 22…..Our need to focus on the core functions of government is magnified by the economic situation we are facing now…
By Soft Sigh From Hell October 5, 2009 at 8:15 pm
“Oh, God, zoomru is here!!”
I was just thinking the same.
By Laura Campbell October 5, 2009 at 11:47 pm
How will they tax businesses, which will close in great numbers, due to the massive unemployment rate affecting consumers? Higher taxes for businesses will lead to inflation. The consumers cannot foot the bill for taxes or inflation in this economy.
Come on, Capitol Clowns, who have forgotten that you are public servants. You will not be able to enjoy living in your private Utopias when people, en masse, are fed up with your endless corruption and foolish antics and are beating your doors downs in protest.
Remove your rose-colored lenses. This state, and country, are ripe for revolution unless things drastically change.
Hit the history books, politicos. Revolutions are never good for the ruling class. I’m not trying to incite anything. I just don’t want to see this state or country decline to that point.
By RHETTBUTLER October 6, 2009 at 1:20 am
Really????? You guys still think this is about a budget shortfall? sanford (lower case s) is simply covering up all the other allegations that are about to come out about him. Come on mark (lower case m), you know the one’s I am talking about. AND..the people in charge who live by free hand outs who keep their constituents who also accept free hand outs, happy.
Look at what we the average taxpayers with a home and kids and …A JOB… are paying already. This state brings in plenty of income. All of this is simply a diversion tactic from two angles of attack. First, is sanford who will currently say and do anything to deflect all the present and future allegations against him. Second, are the individuals in our great state who want to keep the homeless fed, the jobless unemployed, and the sorry…well…sorry. Not Democrats, Republicans or otherwise, just vote grabbing aristocrats who want to keep the masses wallowing in the SH#$@t. A person who will not work and still receives money will cling to that and pass it on to the next generation.
So, fellow Sandlappers, this “new” tax is nothing more than headline news designed to take the heat off of our philandering governor (lower case g)and the sorry people in power who support sorry people in our state who both take handouts as a way of life.
By columbia insider October 6, 2009 at 4:02 pm
No one disputes the main points being made by Sic: 1) SC will soon be facing a deficit in the unemployment insurance fund of at least $1 billion; 2) the BEA says businesses would have to pay roughly $250 and $570 per worker to make up the deficit; 3) the legislature passed a budget last session that did absolutely nothing to address this deficit; 4) Davis (with Ryberg) proposed an alternative budget that set aside $200 million for the fund; 5) legislators accused Davis on the Senate floor of overstating the fund deficit problem and defeated the alternative budget; and 6) in voting against that alternative budget, legislators passed a massive tax increase on South Carolina businesses. And what did the legislators do instead? They increased Medicaid spending by 40%.