SCAT has been busy keeping an eye on lawmakers and issues.

Last Wednesday we had our first meeting of 2019 in regards to ACT 388.

The South Carolina Association of Taxpayers has filed a complaint against the Richland County Recreation District.

Check out the full story here:

http://www.wistv.com/story/34575812/lawsuit-targets-special-purpose-districts-after-recreation-commission-controversy

Don had done a segment on Greenville’s MY40 TV station.

It will air every Sunday in March at 9:30 AM.

Be sure to check it out!

Last session, the South Carolina Association of Taxpayers announced its support of Governor Nikki Haley’s Gas Tax Plan, which included a gas tax increase, alongside an income tax decrease, resulting in a net neutral scenario. After extensive discussion, our Association has decided to continue supporting Nikki Haley’s Gas Tax Plan given the expected tax break of approximately $600 a year if the plan is followed as proposed. The projected gas tax increase would yield an additional $3 billion over 10 years; money extremely important for South Carolina’s growing infrastructure.

As Governor Haley’s plan mandates, agency spending, including the SCDOT, needs to be carefully evaluated. Specific spotlight has been put on the SCDOT, whose recent estimates of nearly $48.3 billion over the next 20 years to fix the roads have been called into question by numerous officials close to the SCDOT. However, the American Association of State Highway and Transportation website finds that the cost of road paving is at its lowest since the 2008-2009. Undoubtedly, adjusting the numbers to reflect this cost reduction will have a significant impact on the total cost if, and when a reevaluation is completed. Until that happens, we encourage you, our No New Tax Pledge Signers to continue to monitor and investigate these numbers.

To demonstrate our continued support of Governor Haley’s plan, we have included below the article we sent to the Editor of the Free Times last year. In this article, our Association argued in favor of Governor Haley’s Gas Tax Plan and discussed the positive economic potential a plan like this, if implemented in its entirety, could have on the state of South Carolina. A copy of the body of the letter is seen below in italics.

“As you travel around South Carolina, it is becoming increasingly evident that our roads are in dire need of maintenance. Underfunding has left many unsafe, while others are so poorly maintained that they are having major impacts on cars, costing drivers more to drive here than in many other states. Since the last $.03 per gallon fuel tax increase was signed into law by then Governor Carrol Campbell in 1987, the cost of paving a road has increased fivefold- while our state’s 16.75 cents fuel tax has remained the same. Clearly, something needs to change.
While there are many competing fuel tax increase plans being considered now in the Legislature, the South Carolina Association of Taxpayers recommends Governor Haley’s plan because it promises to accomplish two goals: 1) it raises much needed revenue for our roads by increasing the fuel tax an additional $.10 per gallon over the course of three years (raising nearly $400 million annually); and 2) it gradually lowers S.C.’s income tax, the highest in the Southeast, to 5% over a period of ten years.
By passing the plan proposed by Governor Haley, the General Assembly will have delivered a two fold economic boost to our state: needed money for infrastructure which helps attract more corporate investment, while lowering our income tax rate. To the critics of her plan, claiming that South Carolina cannot bear the budget cuts needed to lower the income tax rate, they are forgetting the fact that normal growth in the General Revenue funds flows into our state each year.
As a result of recent population growth, accompanied by increasing economic development, the state’s budget has grown by hundreds of millions of dollars per year in normal economic times. In a worst case scenario where the economy suffers an unlikely slow down, these income tax cuts will be tapered down over a longer time period.
While no one likes higher taxes, numerous factors will serve only to increase the cost of fixing the roads each year. When I served on the Tax Realignment Commission (TRAC) in 2010, after being appointed by the General Assembly, we studied numerous ways to raise additional road revenue: higher vehicle registration fees, higher vehicle sales taxes, etc. None compared to the revenue generated by an increase in the fuel tax. And with fuel prices being low, it is the perfect time for the General Assembly to agree to pass the Governor’s plan. While no legislation is perfect, this bill certainly comes close: more revenue for roads, lowering South Carolina’s high income tax.
Governor Haley’s plan also meets our group’s “No New Tax Pledge” standard of not being an overall tax increase, since the fuel tax increase will be offset by the income tax cuts. Any other plan to raise fuel taxes without a corresponding decrease is a net tax increase, pure and simple. The General Assembly would be wise to pass Governor Haley’s plan, so we can begin to fix South Carolina’s roads.”

Given this information, we write to you, our No New Tax Pledge signers and General Assembly members, to encourage you to also support Governor Haley’s Gas Tax Plan. Given your pledge to oppose tax increases, but acknowledgement that money NEEDS to be allocated to fix South Carolina’s ailing infrastructure, we believe that this plan is the best solution to fix the current problem. Your support of Governor Haley’s plan will show voters how important your signature on our Pledge is, while also allowing you to demonstrate your commitment to fix our ailing infrastructure and provide South Carolinians with a significant tax break each year!

The South Carolina Association of Taxpayers plans to write another article in the upcoming month renewing our support of the plan and encouraging our members and Pledge Signers to publicly announce their support!
We appreciate your continued public service and your commitment to our No New Tax Pledge!