April 24 2010
Taxing and Spending Reforms
Our state government spending has grown at one of the fastest rates in the country. Until last year, legislators increased spending well over one billion dollars in new revenue and did not set aside sufficient money in a “rainy day” fund so that we could have avoided this recent cuts to core government services. I believe government spending should increase at a sustainable rate that is commensurate with the incomes of the taxpayers paying for it and therefore propose the following:
An annual cap on state spending that requires budgeting at a sustainable level of growth relative to the annual increase in inflation plus the increase in the population. Tax receipts above this spending limit could be applied toward unfunded liabilities (e.g., our state retirement system), put into a “rainy day” fund to cover shortfalls in years when revenues collected fall short of projections, and/or returned to the taxpayers of our state.
Comprehensive reform of our state’s tax system to make it relevant to the 21st century. Our tax on cigarettes is the lowest in the country, our top marginal income tax rate is one of the highest rates in the country and our tax code is riddled with sales tax exemptions that, assuming they once did, no longer make sense. Our tax structure must be comprehensively reformed, and Iwill fight against net tax increases and work for an overall reduction in the amount of taxes paid by South Carolinians with special emphasis placed on lowering our high job-killing income tax.
Zero-based budgeting throughout state government rather than the current practice of funding agencies at the previous year’s level and only debating new spending and budgeting that reduces the amount of one-time money used to fund ongoing programs (so-called “annualizations”), a practice that creates funding shortfalls in the following year’s budget.
Creation of an independent Inspector General to be appointed by the Governor and tasked with finding waste, fraud and abuse in state government. The need for this function is evidenced by a number of recent disclosures that reflect poorly on the management of state government and failure of oversight.










