By Sen. Tom Davis | One of the problems with state government in South Carolina – aside from the fact that it is too large, wasteful and inefficient – is that it routinely makes decisions that benefit well-financed special interests rather than the best interests of the people.
How can that be in a representative democracy? Well, start with the fact that there are currently 377 lobbyists representing 534 companies and organizations at the State House, each of them pushing (usually with great success) for special treatment for their clients.
Next, look at the fruits of those lobbyists’ labor: our tax code has 112 sales tax loopholes. There is no rhyme or reason to these tax breaks; they range from portable toilet rentals to time shares, newspapers to direct mail postage, amusement park machinery to manufactured housing.
And then look at our state’s “tax incentives” carousel. In the past decade, the special tax breaks doled out by the legislature – special exemptions from taxes that the rest of us have to pay – has increased from $32 million to $254 million a year.
Public officials like incentive deals because it gives the appearance that they are “doing something” to create jobs. But while government press releases gush about how those deals “create” jobs, they never mention the extra tax burden that falls on everyone else in order to pay for them – a burden that ends up destroying more jobs than are created.
It makes no sense to have a tax system that encourages private parties to fight over obtaining public favors. When it becomes profitable for them to put time and money into lobbying politicians for favors, then that is precisely what they will do. Why encourage such unproductive behavior?
And why let government pick winners and losers in the marketplace in the first place? Public officials should avoid what Nobel laureate Freidrich A. Hayek called the “fatal conceit” and leave that chore to the private sector and the profit and loss system.
Top-down economies planned by government fail; those driven by the private sector and the free market flourish.
Unfortunately, however, our state’s economy is rapidly becoming top-down driven. As the South Carolina Policy Council documents in its recent report “Unleashing Capitalism,” total government spending in South Carolina amounts to 40.5% of the state economy – the 10th highest percentage in the nation – while North Carolina’s and Georgia’s is only 32% and 30%, respectively.
The private and public shares in a state’s economy, of course, add up to 100 percent and our goal should be to maximize the former’s share and minimize the latter’s. But South Carolina is doing the exact opposite, increasing state intervention in the economy and sliding toward the government percentage of the least prosperous state (West Virginia at 50%) and away from the most (Connecticut at 20%).
As the Policy Council notes, South Carolina has a hard-working labor force, abundant natural resources, excellent ports and major metropolitan areas, yet our per capita income is only 80 percent of the U.S. average. And what holds us back is our state government’s policy of doling out tax favors to the well-connected and trying to pick winners and losers in the marketplace.
Here’s what we should do:
First, declare that no South Carolinian gets special treatment at the expense of another and call for all special sales tax breaks to expire by a certain date unless a new law is passed to keep them. Some exemptions, such as the one on grocery sales, make sense and are broad-based. But since the 112 special tax breaks represent about $2.5 billion annually, closing even a fraction of them would result in a huge revenue increase.
Second, resist the temptation to spend that new revenue. Yes, there have been substantial state budget cuts in the past two years, but state government spending grew by 41 percent in the four years prior. Per capita state government spending in South Carolina is still 22% higher Georgia’s and 13% higher than North Carolina’s. State government has enough money to discharge core functions if it is forced – as private households are – to spend wisely.
Third, use the new revenue to lower the state sales tax and the state income tax across the board so that everyone pays lower taxes, not just the politically connected. Lower taxes for everyone promotes free market entrepreneurship and discovery – the true sources of prosperity.
These straightforward changes to how we tax in South Carolina would simplify our tax code and put us on the cutting edge of tax policy nationwide. They would make us a magnet for jobs and investment at a time when other states are poised to enact massive tax hikes.
More importantly, these changes would put more money into the pockets of the people whose hard work drives our economy – the South Carolina taxpayers.
Editor’s note: The author represents Beaufort County in the South Carolina Senate. Read more at www.SenatorTomDavis.com.
By down with davis December 21, 2009 at 12:45 pm
FITS give it a rest please. Tom Davis is Mark Sanford’s “do boy” except he will get even less done because he is in the State Senate where McConnell and Leatherman run the show. Those “back row boys” (how gay) are a joke. Mulvaney is running for Congress and does not care. Tom Davis is running for Governor and does not care. They are only interested in getting their name in the media which you oblige them every single time you run these fellatios which you so criticize other media for. If Tom Davis is so great why doesn’t he come up with a plan for the budget instead of attacking like all the rest of these Sanford-cisco conservatives? Oh that is right that would require governing for a change instead of whining from the back row like a bunch of little bitches who did not get their names in the paper enough.
By CNSYD December 21, 2009 at 12:57 pm
Well I see Davis has crawled out from under his Sun City rock. I guess he figures it is safe to come out now that his daddy Sanfraud’s job is safe. IRT the private sector flourishing, you are so right Yankee boy. Just look at the banks and Wall Street. Free of government they do flourish. Just like the Mafia.
By anonymous December 21, 2009 at 1:04 pm
Looks like Tom Davis wants to be a shrimper.
Maybe we should help him with that.
Oh wait, he could also be a crabber.
Maybe we should help him with that.
I know, he could be a shrimper and a crabber.
That’s it, Tom “Crabber” Davis or
Crabber Tom, that has a nice ring to it.
By Skatin on ice@sc.rr.com December 21, 2009 at 1:46 pm
Look at me DUUUHHHHH Im Tom Davis and I have a retard mouth!!!
By Nathan Earle December 21, 2009 at 1:51 pm
Tom,
Your proposal is a good one — it has a lot in common with the Fair Tax (http://SCFairTax.org). Are you on board with H.B. 3992?
Unfortunately, while most of our legislators agree with “spending cuts” in the abstract, they are chronically unable to identify actual programs to cut. And, quite frankly, unless you all are willing to take on the universities and the educrats over at the Department of Education, you will never cut enough wasteful spending to make a difference in our state economy.
By Liberty For Me December 21, 2009 at 1:59 pm
I don’t understand why you people are attacking this man…..I don’t see one mention of fact that this guy has done anything against the state.I understand CNSYD wont be happy till he lives in Russia and thinks he is still free because there are (elections)…But how many pro-communists do we have in this country??One is too many for me!…..How about you people make a statement of who you are for, instead of the chickshit attacks on everyone.Have some guts and say who you are behind and the beliefs you want brought forward….and please take the quiz listed below and post your results
By Liberty For Me December 21, 2009 at 2:00 pm
POLITICAL COMPASS QUIZ
http://www.politicalcompass.org/test
By columbia insider December 21, 2009 at 2:15 pm
“down with davis” — Last session, Greg Ryberg and Tom Davis did exactly what you suggest: they came up with their own plan for the budget in a format with line items that tracked the budget passed by Senate Finance. Their budget didn’t grow Medcaid and education enough to please RINOs and so it failed, but they tried.
By Adam Smith December 21, 2009 at 2:22 pm
This is a smart piece. Davis says it “makes no sense to have a tax system that encourages private parties to fight over obtaining public favors.” And that government “should not pick winners and losers in the marketplace” and “top-down economies planned by government fail; those driven by the private sector and the free market flourish.” And then sets forth three simple reforms. Pretty good.
By Just the Facts Ma'am December 21, 2009 at 2:28 pm
Playing fast with facts and figures won’t stand strong scrutiny. Saying agencies are too large and inefficient is coming from somone who obviously has no idea what it takes to run an agency. His buddy over a corrections continually says he needs more money. State agencies have faced slashed funds repeatedly over the past 6 years, lost thousands of employees and yet have to meet increased service demands to a growing state population — all with increased “accountability” (something his love-gov used to spout). If he wants to make a true impact, start identifying specific services that state will no longer provide and allow agencies to do just that. Most agencies want to make specific cuts but cannot due to political pressure — from Dems and Repubs. Politicians like Davis talk in generalities of “too large” and “wasteful.” Let’s see some specifics — and some targeted reductions. Don’t demand increased services while at the same time demanding cuts…it doesn’t work in the public arena – and it doesn’t work in the private arena.
By anonymous December 21, 2009 at 2:38 pm
“Just the Facs Ma’am” says:
“If he wants to make a true impact, start identifying specific services that state will no longer provide and allow agencies to do just that. Most agencies want to make specific cuts but cannot due to political pressure — from Dems and Repubs. Politicians like Davis talk in generalities of ‘too large’ and ‘wasteful.’”
I don’t agree with a lot of what Davis and his fellow Senate teabaggers propose, but “columbia insider” is right — he and Ryberg put forth a detailed budget alternative that identified specific cuts.
By Wondering December 21, 2009 at 2:44 pm
“Total government spending in South Carolina amounts to 40.5% of the state economy – the 10th highest percentage in the nation – while North Carolina’s and Georgia’s is only 32% and 30%, respectively.”
Is this true? What’s the source for this fact?
By fitsnews December 21, 2009 at 2:44 pm
“Just the facts,”
State agencies have had their funding slashed? Really?
The FY 2009-10 budget (after the most recent cuts) is still over $20 billion … which makes it the second largest state spending plan ever.
Higher ed funding is up, “economic development” funding is up, Medicaid funding is way, way, way up.
Also, K-12 is being funded at its highest level ever, and yet is still producing the absolute worst results in the nation.
Looks like you need to get YOUR facts straight.
-FITS
By Just the Facts Ma'am December 21, 2009 at 2:49 pm
Will, you keep referring to state education funding and medicaid…please tell us about the other agencies that provide a myriad of services. What do their numbers say?
By anonymous December 21, 2009 at 3:09 pm
yeah, will, stop dodging the issue. it’s not as if education and medicaid combined made up over 80 percent of state spending or anything like that. talk about all the other agencies.
By CNSYD December 21, 2009 at 3:24 pm
FITS, dollar comparisons are only valid when adjusted for inflation. For example, $20B today is the same as $12B in 1990. So how does the current budget compare to past budgets when adjusted to a base year? What controls Medicaid spending required of the state, the state or federal government? I believe it is the latter. IRT K-12, what is the success rate when adjusted demographically? Would success in say Marlboro County compare well with say Lexington County?
By anonymous December 21, 2009 at 3:27 pm
cnsyd — the feds stipulate a base minimum of medicaid services that must be provided, but sc has decided through legislation to exceed them. to suggest that sc does not have the ability to decrease the medicaid population it serves is to betray an ignorance of how the system works.
By CNSYD December 21, 2009 at 3:54 pm
LFM, I see you have crawled out of your hole. I have contacted the SCHD and asked that all traffic signals and signs be removed. We don’t want government telling us what to do, do we? I find it interesting that your quiz equates Libertarianism with anarchy. BTW my “score” puts me almost dead center of the junction of the two axises. And when did I advoate going to Russia? Another one of your extreme fantasies. I spent many decades protecting your ass from the Russians, but I now somewhat regret it.
By Groundball December 21, 2009 at 4:33 pm
Well, well, well…. Davis’ buddy gets to keep his job and now he thinks that makes him relevent again! I don’t care what the tonic is that he’s selling, I’m not buying!
Things I may have agreed with him before this past summer need new snake oil salesmen. These guys suck!
By CNSYD December 21, 2009 at 5:05 pm
anonymous, I asked the question because I don’t know. To suggest, however, that the medicaid population needs to decrease is an interesting statement. Do you suggest euthanasia? I find who is not on medicaid interesting. A widowed mother who draws a social security check for her underaged child is not because “she gets too much money”, i.e. approx $1200 per month. Try eating and paying rent on that and see if you can afford private health insurance. Another interesting waste of medicaid money is that most people on medicaid do not have regular doctors because most doctors won’t accept what medicaid pays. (You remember how that is part of the Hippocratic oath don’t you?) So for any and all aliments they show up at an emergency room which costs medicaid multiple times more.
By Liberty For Me December 21, 2009 at 6:24 pm
Being in the military does not stop you from being a communist sympathizer..Especially when you don’t even know you are one..Here is a link to thousands
http://www.votevets.org/index_html
which is a cast off of
http://www.trumanproject.org/
This is how they infiltrate and undermine our liberty…sad when vets are so ignorant…of course you wont see anything anti-liberty in these.
You think it just sunshine and lollipops
Libertarians believe in Liberty not anarchy.Yes,anarchy would be closer to a limited government as apposed to Communism (full government control)as you so much prefer.Anarchy can not work..neither does communism,socialism,or fascism..whichever brand you like.
That is why this countries monetary system will collapse…and all us crazies will be there to restore our freedom.
Libertarians are not against government…but it should be the last resort for any service and should be decided by the people.
CNYSD..I know you think you are a patriot and stand up for freedom.But your statments have shown as long as the government gives you any half baked reason.You are willing to give up any freedom they ask for.That is some scary shit.
By CNSYD December 21, 2009 at 7:47 pm
LFM, Oh that we all had your infinite wisdom! Whenever someone disagrees with ANY stance of yours they are a communist, socialist, facist or whatever label you want to put on them. It was YOUR little quiz that equated libertarianism to anarchy. Now you won’t stand behind something YOU supplied. You want to be a strict follower of the constitution. Therefore I assume you agree that the commomn defense means we have a military. Then if we have a military it must be funded. There must be an organized military with a hierarchy of leadership. They must pledge to follow orders. Any of this sound correct to you are should we just be anarchists and run around in thousands of different directions at once? Well if it is correct then you have just given up “freedom”. So make up your mind.
By Tank McNamara December 21, 2009 at 10:07 pm
yes willie, state agencies HAVE had their budgets slashed! i work for a state agency and i’m right smack dab in the middle of a mandatory 5 day furlough. this is in addition to additional mandatory furlough days i had to take in the prior fiscal year. my agency has laid off over 75 employees, lost numerous employees to local jurisdictions, have not hired any new employees in over 18 months and will not hire anyone this fiscal year. we are also being told that its very possible that next year’s budget will not exceed our current funding so it is very likely we will continue to lose employees while people like you will expect the level of services to remain the same. so for you to flippantly question whether budgets have been slashed, i suggest you follow your own advice: “get YOUR facts straight”!
By Liberty For Me December 21, 2009 at 11:10 pm
CNSYD. You bore me with your shallow thought and side stepping of who and what you are.Your lack of understanding of our country and individual freedoms is only overshadowed by your ignorance of what a republic is or at least was….you are hopeless
By Ynot December 22, 2009 at 7:19 am
Tom Davis is scum
By Toyota Kawaski December 22, 2009 at 9:06 am
Columbia Insider you need to get out more that was nothing more than a dog/pony show by two blow hard yankees who are smarter than the average SC Bear.Get a dam clue Ryberg and Davis love them some ryberg and Davis
By Jeffy01 December 22, 2009 at 9:14 am
Sen Davis will get the same reaction on the Senate floor as he did on FITS ….yawn.
By Skidmarks December 22, 2009 at 11:33 am
Makes good sense to me:
“First, declare that no South Carolinian gets special treatment at the expense of another and call for all special sales tax breaks to expire by a certain date unless a new law is passed to keep them…But since the 112 special tax breaks represent about $2.5 billion annually, closing even a fraction of them would result in a huge revenue increase.
“Second, resist the temptation to spend that new revenue.
“Third, use the new revenue to lower the state sales tax and the state income tax across the board so that everyone pays lower taxes…”
And maybe:
“These straightforward changes to how we tax in South Carolina…would make us a magnet for jobs and investment at a time when other states are poised to enact massive tax hikes.”
We’ll still have to have massive corporate welfare to attact business.
By John Steinberger December 22, 2009 at 12:47 pm
Sen. Davis has pledged to co-sponsor the South Carolina FairTax Act. Go to http://www.scstatehouse.gov and find the contact info for your state legislators. Deliver the message FairTax = Jobs! When businesses have the capital to expand and hire, revenue will start flowing into the state treasury. Spending caps will enable our government to deal with profligacy.
By SC Integrity December 22, 2009 at 1:57 pm
Glad to see many won’t be soon forgetting the extra dose of embarrassment and shame Davis brought upon Beaufort on national news. Warms the heart, hope is alive! At least we got a glimpse at what Davis’ priorities are, supporting immoral friends at all costs, so we can vote him out next time.
Have no clue what his religion may be but sure hope he gets one soon. Just wishful thinking since it’s Christmas. Forget about religion else wise, it’s only worked to our diabolical detriment in state affairs.
Is Tom Davis a Rotarian btw? That hypocritical religion would suit him.
By CNSYD December 22, 2009 at 4:11 pm
LFM, I believe hopeless is the term that fits you. No one is allowed to vary one whit from your party line or they are the scum of the earth in your eyes. Totalitarian is the real term that fits you. I know more about this country than you as I have participated in it and not just stood around and bitched like you.
By Liberty For Me December 23, 2009 at 10:19 am
CNSYD….Your right..following the constitution is totalitarianism.(what a patriot you are).Once again you show your patriot act fascism.Now go put your old uniform on and go attack Iran.I hear that they just got a 20 horse Evinrude…So I guess we are once again threatened by their navy.
By CNSYD December 23, 2009 at 3:02 pm
LFM, you are so dense that you fail to see that YOU are the totalitarian. Every one must think exactly like you or they are damned. I guess you ignore that free speech stuff. For your edification, Iran has Russian built submarines known as Kilo by the West. They are diesel-electric. Project 636 submarines of this class are called “black hole” submarines by the US Navy due to their ability to virtually disappear as they are considered some of the quietest submarines in the world. So you can sit back and ridicule our armed forces but we do have capital ships in that area. That is why we have attack submarines there also to provide them protection. So you may think other countries are not capable of harming us but you would once again be incorrect. BTW “the common defense” is a part of the Constitution.
By Liberty For Me December 23, 2009 at 11:25 pm
So is a judge a totalitarian?..Laws are meant to be upheld.If you don’t like them then you get rid of them.But you don’t ignore them or impose them randomly.I am all for free speech so I have no idea what you are talking about…But I will not agree with people who support taking away our freedom…for any reason.You are really ate up with this submarine stuff.I don’t know what your point is.What the hell does that have to do with Iran?..Where do you get I am against the military?? thats crazy..But that doesnt mean I want young men dying to further some bullshit cause.
Of course the constitution is for the common defense.That is what the federal government is for…..I really dont think you have any points,just facist rambling of big government handouts,welfare,unions and why we should invade other countries.
By CNSYD December 24, 2009 at 9:45 am
The submarine reference was an obvious (to everyone but you) reply to your Iran and Evinrude motor comment. I used submarines as that is an area of which I am very familar. The reason you are totalitarian is you go beserk whenever anyone disagrees with a statement of yours or the even, in your eyes, worst sin of trying to interject logic in the discussion. You operate strictly from a my way or the highway approach. IF you are going to support the Constitution then you have to abide by all parts of it. So when a law is passed that you don’t agree with you have several choices. You can ignore it and suffer the consequences or observe it while working through the Constitutional chain of command to get it repealed or changed. Railing about it accomplishes nothing. I hate to have to inform you but the ultimate “keeper” of the Constitution is the Supreme Court. We may not like their decisions but that is how the three parted form of government we have is set up. No one wants our military dying for any reason but I would imagine you can find citizens who will argue that any conflict we have ever been in was “bullshit” and a waste of lives. Our representative form of government vests decisions about use of the military in the hands of those who we elected. If you don’t like their decisions vote them out. Once again your version of “free speech” means using perjorative terms to describe those who disagree or take issue with you.
By Liberty For Me December 24, 2009 at 2:06 pm
Not really..mostly just you.Because you are the only one who posts here that thinks facism is patriotic.Kind of a like a confused ..kinda pro-bush democrat…kida not really anything
You side step and avoid questions and are afriad of who you are….kinda wierd
Seems to me,I am always answering to your crazy attacks on anyone who is for liberty or free market.ala..this post on Tom Davis..you had no point.
Sanfraud?? whats the point?…who are you promoting?? Nobody…because you are always a winner when you can attack and not have a person or real agenda you forward or support.You are the fraud
By CNSYD December 24, 2009 at 5:44 pm
LFM, since Davis is connected at the hip to Sanfraud, then he has no room to be pontificating on anything. My point is that any and all of Sanfrauds buds need to shut the hell up. That includes Davis. Was that so hard to understand? I would suggest you do some reading (may be a new experience for you) to understand facism. It fits you like a glove with your lack of openess. I believe in debate and majority rule. Not your heavy handed totalitarianism.
By Liberty For Me December 24, 2009 at 6:48 pm
Let me get this straight…You are for open debate unless it is Sanford or anybody that has ever been around him or knew him.Then they should just shut up?…I believe in heavy handed totalitarism because I want people to be free??…But you are a patriot because you want an oligarchy?…That makes perfect sense….wow!
Just curious to what I have ever said or promoted that is totalitarian???Please clue me in…
By CNSYD December 25, 2009 at 10:26 am
LFM, I would assume that those with some degree of intelligence and manners who had locked themselves to a politician who is now discredited, would keep their mouths shut as whatever they have to say is obviously tainted. But then I am giving Davis to much credit for having intelligence and manners. I have yet to see where Davis has publically admitted he was fooled by Sanfraud and has cut his ties to him. All this “friend” stuff is just a cover. IRT your views, you slam any and all who differ with you on any point no matter how minor. In your mind you have all the solutions and all knowledge and no one better deny it. So now do you understand? If that is your definition of being “free” then I doubt you get many takers. Perhaps you are unaware but this country is a republic and as such we elect representatives (House, Senate, President). They hold powerful positions and make decisions that affect us all. So if that makes us an oligarchy then I guess you are right. What is your solution? Anarchy or chaos? IRT your definition of “free” how do you answer the age old question of yelling FIRE in a crowded theater?
By Liberty For Me December 25, 2009 at 7:30 pm
“I believe in debate and majority rule” is your quote…Do you know what majority rule is?? Please explain…?? A repulic is not majority rule…You always talk out both sides of your mouth.
Having a friend who does something bad does not make you a bad person.
I assume anyone you have as a friend(which I doubt) or family..you would turn your back on and betray your friendship if they cheated on their wifes?..I really dont need you to answer because I know you are the neighbor who always spies on everyone and calls code enfocement or police…You would sell out your mother to the government…
I dont slam peoples views as much as I point out which aganda they are coming from.If you are pro-communist then you should embrace the fact.quit running from the truth
Russia has elections..even Iran has elections.That hardly makes them free countries.The socialist agenda has been a slow creep.But if you dont see how close we are coming day by day to what we have fought against.You are either blind or you do not want it exposed.
By CNSYD December 26, 2009 at 10:47 am
First lets look at the word “republic”. Is is defined as a state in which the supreme power rests in the body of citizens entitled to vote and is exercised by representatives chosen directly or indirectly by them. Now how do representatives get chosen? BY a MAJORITY of the voters. When the representatives meet and decide an issue how do they do that? By a MAJORITY. Now what is so hard to understand about that? Are you using the royal “we” when you state that you have “fought”? You libertarians, or whatever you are calling yourselves this week, always want to say that free will is supreme. We all have free will. It may be that the exercise of it will get you in a lot of trouble, like violating traffic laws for example, but you have the free will to make the choice. Apparently your idea is to eliminate all laws and regulations so that the exercise of your “free will” can not be inhibited. OK,then you have destroyed all order. Is order a socialist, communist, you fill in the blank idea? No, all of nature, which existed well before us operates by this concept or haven’t you noticed?