S.C. Rep. Bakari Sellers (D-Bamberg) is proposing a ten percent reduction in South Carolina’s gasoline tax … and unlike “Republican” lawmakers who insist on raising taxes to cover the cost of their tax relief, this third-term Democrat isn’t offsetting his proposed cut with any “revenue enhancement.”
Sellers’ legislation would trim the current state gas tax from 16 cents per gallon to 14.4 cents per gallon – pennies that not only add up over the course of the year for South Carolina drivers, but which might lure drivers from other states across our borders.
That would obviously help our border counties … which were recently put at a competitive disadvantage by the GOP’s 2010 cigarette tax hike.
“I think when you cut this tax it will actually increase revenue on its own,” Sellers told FITS. “If motorists see gas in South Carolina that’s consistently cheaper than our neighboring states, I think we will see increased consumption.”
Imagine that … a Palmetto State politician proposing to let the free market do its thing.
That’s certainly a rarity in “Republican-controlled” South Carolina.
Sellers says that reducing taxes on gasoline and groceries – i.e. essential spending – will help all South Carolinians, but particularly those who are struggling to make ends meet during a very rocky economic “recovery.”
Bakari Sellers: "Befuddled" by GOP opposition to tax cuts.
“I am in favor of cutting every regressive tax we can find,” Sellers said.
So are we … again, so long as there is no corresponding tax increase.
Obviously our main focus here at FITS is on the elimination of the individual income tax – the levy that has the most direct correlation on private sector job creation, but we’re not going to turn down tax relief when it’s offered.
“It befuddles me why (Republican Speaker) Bobby Harrell hasn’t come up with this idea before,” Sellers said.
Really? It doesn’t “befuddle” us.
While Sellers is proposing to cut the state’s gas tax, Republican lawmakers have been toying with the idea of raising it in previous years. In fact, both the cash-strapped S.C. Department of Transportation (SCDOT) and a legislatively-created Taxation Realignment Commission are advocating in favor of a gas tax hike.
How much more money do they want? Well, the most recent increase endorsed by SCDOT would have taken the gas tax from 16 cents per gallon to 22.25 cents per gallon – an increase of more than 30 percent. Supporters of the gas tax hike argue that South Carolina’s current fuel levy is the fourth-lowest in the nation and hasn’t been raised since 1986.
Our response to that? We hardly ever say this, but “keep on keepin’ on,” South Carolina.
Seriously … having low fuel costs is one of the Palmetto state’s few competitive advantages. Or at least it would be a competitive advantage … unfortunately, despite being one of the nation’s smallest states (both geographically and with respect to our population), South Carolina has the nation’s fourth-largest system of state-maintained roads.
Not only that, our SCDOT can’t stop wasting money on unnecessary projects long enough to take care of the roads and bridges we currently have.
So … is there enough money in the budget for Sellers’ gas tax cut?
Um, yes. And then some. In addition to the $1.3 billion in new money that’s being spent in the current (FY 2011-12) budget, lawmakers will likely have another $1 billion to play with for the coming fiscal year.
So are other cuts being proposed? Of course not …
S.C. Gov. Nikki Haley offered a small status quo tax swap during her 2010 campaign – which included a grocery tax hike – but unveiled no tax reform whatsoever during her first year in office.
She says she’ll have a plan ready in 2012, but we’re not holding our breath.
Meanwhile Republican lawmakers haven’t substantively reformed the state’s antiquated, anti-competitive tax code since 2006, when a disastrous property tax-sales tax swap was passed. That legislation – touted as “revenue neutral” – has actually opened the door to a massive cash grab by local school districts, further diminishing the revenue of locally-owned small businesses.
Clearly it’s time for South Carolina elected officials to stop swapping taxes and start cutting them.
Sellers gas tax cut isn’t a huge amount of tax relief, but it’s a step in the right direction.
SELLERS GAS TAX CUT (.pdf)
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By wth? December 5, 2011 at 11:34 pm
Hell has truly frozen over. I can’t believe that I’ve just read a write-up telling me a Democrat is proposing a tax cut.
If things keep going this way in this state I might actually vote for a Democrat.
Bakari’s just elevated himself beyond more than half of the elected RINO’s in our state.
My hat is off to you sir.
By CriticalMass December 6, 2011 at 3:44 am
Don’t get too taken in by the smoke and mirrors, WTH… most times, this sort of thing is followed by a corresponding tax increase that goes after property owners wallets.
You know, just to make things more “fair.”
I’ve always been amazed at the sales tax cap on vehicles being this wacky situation:
_______
“Sales tax totaling 5% of the vehicle purchase price ($300.00 maximum) must be paid when you register a newly purchased vehicle in South Carolina.”
About 1/3 of the way down the page here:
http://www.scdmvonline.com/DMVNew/default.aspx?n=titleandreg
=======
I’m fine with it if there’s a $300 cap, but don’t make it 5% by the math for every vehicle below that. Scale it so poor shlubs buying a $5000 car aren’t paying $250 sales tax while a dude buying a $75,000 car is paying $300.
I believe in capitalism and stimulating the economy, but that’s shameful.
By wth? December 6, 2011 at 9:12 am
You at least have to hand it to him for recognizing the evil of regressive taxes. If some of the true Republicans and Democrats truly interested in helping the poor got together on that basis alone a lot of taxes could be stripped away.
It would at least be the start of a “coalition” that actually accomplished something.
Going even further down Bakari’s line of thinking, you could next target the regressive property taxes associated with being a small business and level the playing field by bringing them down to the lowest rate we give big manufacturers via FILOT so we had a level playing field and incentivized small business instead of just big business(and it just so happens small business employs more still…)
By Old Bike Dude December 6, 2011 at 6:32 am
Strom was a democrat. Then one morning his black children decided they wanted to go to school with his white children. Then everything changed.
By BigT December 6, 2011 at 6:49 am
We get it FITS:
Democrat: Good
Republican: Bad…..according to you…
Also: I suggested some time ago that democrats try to govern like Conservatives, if they want ANY chance of ever having relevance…
Maybe they’re listening to me…
By fitsnews December 6, 2011 at 7:28 am
Yes T, I think they are listening to you …
By Nolff December 6, 2011 at 11:20 am
You’re bipolar. Seek help.
By Dot December 6, 2011 at 7:23 am
Especially since the Department of Transportation, under Haley, has shown itself incompetent to manage money, I say give it less.
By vicupstate December 6, 2011 at 7:46 am
The gas tax in NC (26.85 cpg) and GA (7.5 cgp + 4% sales tax, which is 12 cent on $3.00) are already significantly higher than SC (16.6 cpg).
Whatever benefit the border counties would receive, is largely already being realized.
By Makesmecry December 7, 2011 at 12:03 am
Don’t forget the amount our state pays to other states under the International Fuel Tax Agreement because our fuel tax is so low – someone needs to do a little research and put some sunshine on that issue.
By Thomas December 6, 2011 at 7:53 am
Clever. A total set-up, but clever nevertheless.
By BigT December 6, 2011 at 8:03 am
Set up or not. Not so sure if it will work…
From what I hear, Sellers is one of the great hopes for the democrats in SC.
But ask him about so many other issues: School prayer; abortion; cutting welfare; education funding; ObamaCare; Occupy; Gay marriage; global warming …..If any democrat in the South is going to go right, there is so many more issues to vet.
Will they try it???…Yes (it’s their only chance to stop the rot and decay)…
Will it work???…Probably not. The national liberals will begin to get disgusted, and the Republicans may be pushed to actually governing Conservative, like they promise election after election…
BUT: moving to the right is the only answer to help us heal…if the democrats understand that, maybe the Republicans will get it too…
By Bonhoeffer December 6, 2011 at 8:22 am
Hang in there Bakari–Jim Clyburn can’t live forever.
By snodgrass December 6, 2011 at 8:44 am
If people aren’t fed up with party politics by now, I can’t imagine what it will take. Having a certain letter by your name doesn’t magically give you wisdom or instantly purge you of character.
There are people all across the political spectrum who are capable of offering insightful contributions. To boycott someone’s ideas, simply because of their party affiliation, is both childish and counterproductive.
It’s my understanding that legislator’s swear an oath to the people, not a party. I welcome Representative Sellers’ proposal. Let’s hope it inspires some additional reasoning among the unreasonable.
By BigT December 6, 2011 at 10:00 am
Clue: Party’s have Platforms…And I know the GOP candidates read theirs, because they promise to follow it in the campaign…but when they get into office, too many act like democrats, and hence the failure…
The Party’s are not the problem. Left-leaning is….
By vicupstate December 6, 2011 at 9:01 am
BTW, wth?, Obama (a Democrat) has already given you a tax cut, a payroll tax cut to be specific. It was 40% of the stimulas package.
By wth? December 6, 2011 at 9:24 am
Oh come on now, it wasn’t “Obama”, it was all of them…but the “40%” number you cite is paltry in comparison to what’s really needed. We need to reduce taxes substantially to be globally competitive and even if we left the tax system as “status quo” we’d need to whack gov’t in HALF just to stop losing money.
Aside from that the payroll tax cut was only 2%, which isn’t gonna do much, but even further because I own my own business it didn’t help me because they magically decided that we have to pay the old rate even though the employee pays less.
Of course, everyone is ignoring the “elephant” in the room, which is if SS is losing money and bankrupt in 20 years how the hell do they justify cutting contributions to it?
We need to dramatically cut taxes AND scale back gov’t, while admitting my generation(x) and younger aren’t getting any SS…it’s another broken gov’t promise.
Once the population realizes that gov’t can’t fulfill all it’s promises over time we can get back to what American society used to be…not the rampant welfarism(personal and corporate) that it represents today.
By ralphie December 6, 2011 at 9:32 am
Why not open our shores for drilling…then sell to the world and TAX that REVENUE?
By ceilidh09 December 6, 2011 at 9:35 am
good idea but them there roads is gonne get all tore up and there’ll be no money to fix em, ya’ll
By ceilidh09 December 6, 2011 at 9:35 am
let’s do offshore drilling and destroy our beaches and beautiful coastal communties
By Yep December 6, 2011 at 9:40 am
Yes, yes, cause it’s much better to buy oil from monarch’s/dictators oppressing middle easterners and having our meddling gov’t send our money and children over there to secure our tank full of gas than it is to try to get it off our shores and risk the occasional accident.
There’s been how many major oil platform accidents that have sullied our shores in 25 years? 1?
They still managed to clean it up.
Oh, maybe you think we should do neither and start riding around in horse drawn buggies, right?
By toyota kawaski December 6, 2011 at 10:32 am
ah yes time for the little Obama to get his name in the paper again been about 4/5 months sense the last news cycle for him.
By toyota kawaski December 6, 2011 at 10:36 am
FITS please get a dam clue and see how much $ actually comes back to the DOT after the FEDs get done??? rant rant with no dam clue!!!
By Not So Much December 6, 2011 at 10:46 am
Need to be raising taxes on gas, alcohol and cigarettes, all three, not lowering them. Folks would use less gas, drink less liquor and beer and smoke fewer cigarettes. God forbid we have better roads or healthier citizens. Then we just have to get the money into responsible hands, if we could find any.
By Petey December 6, 2011 at 11:12 am
He’s just positioning himself, it is an election year after all.
By Lame December 6, 2011 at 1:13 pm
My BP card gets 5% off (about 16 cents per gallon right now). And don’t try to tell my that out of state people are going to drive to SC just to save 1 cent a gallon (after the station absorbs the other 0.6). I hope this genius idea didn’t knock out too much of your free time. You really could be doing far more productive things, like sorting pennies and selling the ones with a little bit of copper left in them.
By Pork Biscuit December 6, 2011 at 1:19 pm
A couple of cents a gallon, maybe a quarter saved for a fillup. Yep, I’m gonna fight my way across Charlotte to Rock Hill to save me some BIG money!
By No Pledge. December 6, 2011 at 9:17 pm
Gas taxes affect the cost of EVERYTHING in the State. Good move to reduce them.