The Palmetto Insider

The blog of the South Carolina Policy Council

How to Raise Taxes (Kansas-Style)

with one comment

We’ve written before on how at least one state—Rhode Island—managed to slash taxes during the current recession.

On the other end of the spectrum is Kansas, which recently passed a “temporary” one-cent sales tax increase. (Neighboring North Carolina has had a “temporary” sales tax on the books for years.)

Kansas, like South Carolina, has a Republican-controlled legislature. Contrast that with Rhode Island’s Democrat-controlled legislature.

In Kansas, the tax increase was justified as necessary because neither education nor Medicaid could possibly be cut. Apparently, that left only corrections, which also could not be cut. Hence, a tax increase was argued to be imperative.

Yet, like South Carolina, Kansas rapidly increased spending before the start of the recession. As one legislator who objected to the tax increase argued: “It seems that we have a spending crisis, not a budget crisis.”

 In South Carolina spending likewise continues to grow, with the legislature passing the largest budget in state history for FY2011. 

So, the question is, will South Carolina, like Kansas, also raise taxes?

According to The Nerve, the answer is yes—or at least that’s what the powers that be seem to be planning for 2011.

New sales taxes on groceries, water, electricity, and prescription drugs are in the works. Untouched are special tax breaks for Boeing and other manufacturers.

As for that proposed sales tax cut? … don’t believe it.

Come next year we’ll hear—as taxpayers heard in Kansas—that taxes need to be increased to pay for education, health care and corrections. But in  reality,  spending is just too high—on everything from education to economic development. The solution: shorten session and institute an effective spending cap. Doing so will force legislators to evaluate what programs are really working and prioritize spending accordingly.

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Written by Jameson Taylor

July 28, 2010 at 12:40 pm

Posted in Budget, Limited Government, Taxes

Tagged with ,

One Response

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  1. […] This post was mentioned on Twitter by SC Policy Council and John Stephenson, The Nerve. The Nerve said: How to Raise Taxes (Kansas-Style) « The Palmetto Insider http://bit.ly/bTraHj […]


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