South Carolina’s legislative leaders are considering hundreds of millions of dollars in tax and fee increases as part of their efforts to preserve an unusually large, inefficient and dysfunctional state government through 2010 and beyond.
At a whopping 41 percent of gross state product, South Carolina already has the tenth-largest government apparatus in America – and that’s based on 2005 numbers (when the state budget was $4 billion less than it is today). Unfortunately, taxpayers can expect that abnormally large percentage to grow even larger in the months and years to come – even as unemployment continues to rise and income levels stay flat on account of the worst economic recession in eighty years.
How is this possible?
Well, in addition to another billion dollars worth of federal “stimulus” money, 2010 could see the most prolific (and yet under-publicized) round of tax and fee increases in recent memory – which would suck hundreds of millions of dollars directly out of the state’s economy and into government coffers.
In fact, despite their public pronouncements to the contrary, RINO legislative leaders like Senate Finance Chairman Hugh Leatherman, Senate President Glenn McConnell, House Speaker Bobby Harrell and House Ways & Means Chairman Danny Cooper, are secretly working behind the scenes on several tax and fee hikes.
“It is evident that our state’s economy in 2010 will not produce the General Fund revenue needed to fund every program,” these four legislative leaders wrote in a recent opinion-editorial. “A general tax increase to make up for this loss would be foolish and would only further hurt our economy. So, the alternative is to carefully examine and eliminate – or privatize – some of the programs we can’t afford to fund.”
Sounds good, right? After all, FITS has been arguing for the privatization of dozens of different government functions for years – ideas which Leatherman, McConnell, Harrell and Cooper have rejected in favor of a massive expansion of government’s role in the private sector.
Of course, as anyone who follows state government in South Carolina can tell you, saying one thing and doing another is standard operating procedure for RINO politicians like Leatherman, McConnell, Harrell and Cooper.
For example, note how careful they were to only express their objection to a “general tax increase.”
As for specific tax increases, well … that’s a different story. In fact, sources tell FITS that a new sales and use tax law being drafted by longtime big government backer Burnie Maybank (which is based on Leatherman’s expressed wishes) is chock full of tax hikes. In addition to imposing an Internet sales tax, Maybank’s proposal – which is currently being “scored” by the liberal Board of Economic Advisors – reportedly seeks to extend the state’s already high sales tax to a host of other services that are not presently subjected to such a levy.
Maybank’s plan is also said to repeal numerous existing sales tax exemptions – all while failing to offer a corresponding revenue decrease.
The result of all these changes could be a net tax hike totaling billions of dollars – again, with no corresponding relief for South Carolina taxpayers.
As if all of that wasn’t bad enough, on top of Maybank’s latest big government machinations we have a routinely exploited government loophole that’s poised to wreak additional havoc on taxpayers – namely relating to the billions of dollars in largely unexplored (and totally unpublicized) “other funds” that are generated predominantly by state agency fees.
In the 2003-04 budget, these “other funds” totaled $5.4 billion (compared to $4.9 billion in general funds). In the budget lawmakers approved last year, they had soared to $7.2 billion (compared to $5.7 billion in general funds).
This year? They are likely to climb even higher – unless lawmakers take action to prevent that from happening (which is … duh … extremely unlikely).
Here’s how this scam works …
Any agency proposing a fee increase must notify lawmakers of their intention to do so, at which point the proposal is placed on a committee calendar for debate. However, if the legislature doesn’t take up the fee increase within ninety days, it doesn’t go away - it becomes law!
Millions of dollars worth of fee hikes are passed each year by this “backdoor” method (a favorite of McConnell’s), which enables lawmakers to shore up agency budgets without having to go on the record supporting tax hikes.
There is a proposal on the table to close this oft-abused loophole, though.
State Sen. Tom Davis (R – Beaufort) has filed a bill that would require any fee increase to, in his words, “receive the affirmative vote of both the State Senate and S.C. House of Representatives.”
Here’s an excerpt from the text of Davis’ bill:
No state agency, department, or entity by regulation may increase or implement a fee for performing a service or function, or a civil penalty or fine for failure to comply with a requirement or provision of law under its jurisdiction without the specific approval of the increase or new fee, fine, or penalty by the General Assembly by a joint resolution approving the regulation. The joint resolution approving the regulation increasing or implementing a fee, fine, or penalty must contain the amount of the increase or imposition in the title and in the body of the joint resolution.
Unlike some “pro-business” advocates, we’ll obviously be tracking how lawmakers vote on this important legislation, as well as any attempts they make to kill it or dilute its effectiveness.
Either way, contrary to what legislative leaders are saying, tax and fee increases are very much on the table in 2010, and while the mainstream media isn’t likely to tell you about them – count on FITS to keep you updated on lawmakers’ latest efforts to brave the ongoing recession by digging even deeper into your pockets …
By PasserBy January 11, 2010 at 9:10 am
FITS:
Am I the only one missing it? If you have less money, “cut back”, not “cut the throats” of the public. I guess I’m not smart enough to be Columbia politican….
By John Steinberger January 11, 2010 at 9:44 am
This is even more reason to enact the South Carolina FairTax Act (H.3992/S-902) in 2010. The bill would elimnate the 7% state personal income tax and 5% state corporate income tax. It’s the only legislation filed so far that will give existing businesses incentive to expand and hire and consumers the confidence to spend. It will also lure entrepreneurs from other states to bring their businesses to South Carolina!
You can get contact info for your state legislators at http://www.scstatehouse.gov and click on Locate Your Legislators (left column). Encourage them to support the South Carolina FairTax Act! FairTax = Jobs!
By votar January 11, 2010 at 9:49 am
Let’s sell off some of the hundreds of thousands of acres of state and national park service lands to raise cash—after all, we the people OWN these lands, right?
By Great Caesar's Ghost January 11, 2010 at 9:50 am
Davis’ bill makes too much sense, so there is no way the Senate will allow it to pass. How in the world did it even make its way out of Senate Finance and onto the Senate calendar? The only problem I have with it is the sunset date on July 1, 2010. Why did Davis add this?
By cfd007 January 11, 2010 at 10:11 am
We need to elect some truly fiscally conservative people this time around.
“Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.” – Mark Twain
By countryboy January 11, 2010 at 10:12 am
I will say it again, politicians are like baby diapers, they need to be changed often…. and for the same reason.
Our current crop, in Columbia and Washington, represent a particularly “stinky” load.
(sorry I can’t give the originator of this statement credit but lost his name)
By Katherine Jenerette January 11, 2010 at 10:33 am
In classic Marxism the group that controls the means of production controls and decides what is done with the resulting product or capital from that production and therefore controls the people: each and every individual in that social slash political system. Whew! Scary!
So let’s apply that Marxist Maxim to the ‘classless’ State of South Carolina: (1) the group that controls the means of Taxation controls every individual South Carolinian (2) the group that controls the means of Service Fees controls every individual business and person needing that service in South Carolina (3) the group that controls the means of Education controls every individual South Carolina child and how stupid or smart the resulting product or, non-product is from that production and therefore controls the people. [I had to slip that in!]
Bottom Line of the Line: Whoever makes up the Rules and the Structure ends up controlling who can participate and ultimately what the out come will be.
Time to shut down Columbia – restructure the SC Government – put a moratorium on Tax and Fee increases – and just for a while put the concept of Individual Self Government back with the individual for a couple of decades. That would equal more jobs and more revenue – what an interesting concept.
The Best Government is a Little Teeny Weenie Government.
That’s all for now – Katherine
P.S. Riddle: How much real damage did the Yankees do when they burned the Statehouse in Columbia in 1865?
By cfd007 January 11, 2010 at 11:15 am
I’m with you Katherine.
By 2DUMB2NO January 11, 2010 at 11:34 am
Dear Katherine:
Answer to your riddle. Even the dumbest Charlestonian knows that when you burn a house down the cockroaches are the first to vacate the premises. The 1865 cockroaches are alive and well as represented by their offspring currently holding offices statewide. As for your “Little Teeny Weenie” analogy I have it on good authority that the top three contenders are Bauer, Knotts and McConnell in no particular order.
P.S. Riddle: Is KJ’s Little Teeny Weenie reference a political or sexual preference?
By Liberty For Me January 11, 2010 at 11:45 am
Explain to me again,why people get so fighting mad about parties???
What is truly the difference??..Nothing but a facade
By Genomic Repairman January 11, 2010 at 12:17 pm
The sad thing is there are a lot in SC are too dumb to realize what is going on. They see their legislators squawking off about not raising taxes, while they are letting the agencies levee these fess in lieu of taxes, and think wow they must be doing a great job and elect these pickpockets year after freaking year. This crap drives me up a wall and made my decision to leave SC a lot easier along with poor in-state job prospects for science, our relative trend towards increased mouthbreathing, and increased glamourization of the welfare lifestyle. Sadly, I was met out here in Texas with more of the same except a better economy.
By No Name January 11, 2010 at 12:34 pm
FITS
Please create a simple No New Taxes Pledge that can be used with all the Pols currently running for in State office.
By tamu88 January 11, 2010 at 12:45 pm
Geonomic Repairman; don’t forget, the Texas Legislature meets only every other year.
By Commonman January 11, 2010 at 12:48 pm
Nothing but good, fiscally conservative Republican leadership will see us through. And you won’t find that in this state. The State will figure out how to soak the taxpayer, but wait til local governments (city, county, and especially school districts) lay it on the taxpayers. Can you say millage increase? I say vote them all out and start over.
By Bored with ya'll January 11, 2010 at 12:52 pm
To Katherine and all the rest of you who keep screaming for smaller Government, here is a suggestion. Find someplace with “teeny weenie” Government, Somalia comes to mind, move there, tell us how you like it. South Carolina was controlled by the Textile Industry for years, then they left. We need incentives to use those plants to build cheep Solar Panels and Wind Generators. A green economy is the future, that will require help from the Government.
By wildone January 11, 2010 at 1:30 pm
Well with the population continuing to grow as people are having babies they cant afford, you would expect state government to grow. They need to abolish all Terri employment and if you are retired from state government you cant come back to work for state government. There are retirees coming back to work and they are making more than agency directors.
By votar January 11, 2010 at 2:07 pm
Cut DNR funding–who cares if “Bo” shoots a duck 3 minutes before “legal” shooting time?
Humans are actually freezing to DEATH in South Carolina.
Spend our limited resources as a state where the monies can actually do the most good.
By patricia January 11, 2010 at 3:28 pm
There has to be some fat that can be cut. I don’t buy that every agency is run efficiently. I don’t understand why we can’t analyze and eliminate the fat – it is done in private business all the time. But, that would make sense…
By rick January 11, 2010 at 7:06 pm
Wow Patricia, and you didn’t need anyone from Columbia to tell you the answer.
By Liberty For Me January 11, 2010 at 7:20 pm
Bored with ya’ll….A green economy.ha ha ha haha haha ahh…thats too much.What a kool-aid drinker.What does that even mean?? caulking winows??
windmills??solar panels??…If any of that was efficient we would use them now.Once we find something it will be emplimented.Until then it is hardly our “future economy”…..
By Steve January 11, 2010 at 7:56 pm
Will,
I read a report that Burnie Maybank’s proposal to close the go-zillion sales tax loopholes was coupled to reducing the overall sales tax percentage rate – back down into the 3% to 4% range. What happened to that? A broader tax base and a lower tax rate makes good sense. Don’t tell me Ways & Means and Senate Finance have already gummed up the works on that idea.
By fitsnews January 11, 2010 at 8:17 pm
Steve-
Leatherman would never go for that … and Leatherman is TRAC … at least what’s left of it after the back row boys (a.k.a. William Wallace caucus) saved the day.
-FITS
By marklikestofruck January 11, 2010 at 8:33 pm
If they would stop the godamn Teri programs and stop hireing back retired state emplyoees at massive fucking salaries they would not be in this mess their are old buzzards making twice what regular employees are making. This shit needs to stop. It is all about getting their buddies back on the gravy train!
By BIN News Editorial Staff January 11, 2010 at 9:06 pm
sic(k) willie is such a political pimp.
And, nauseating.
sic(k) willie’s recent posts have made our Funding Editor puke up her evening Metamucil cocktails several times over the last few days.
Besides Howie’s voucher scam, Mickie the Hickie, Tomtom Terrific ;) and Kombat Katherine, who else is paying sic(k) willie these days?
What a pimp. A political Pimp.
By Commonman January 12, 2010 at 8:16 am
Teri employees are now running state government, see Budget and Control Board Executive Director and some of their top staff, and you will know that TERI is here to stay, at least as long as these bureaucrats can take advantage.