Monthly Archives: August 2014

Former Michelin CEO calls for tax reform

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S.C. taxes for manufacturers are some of the highest in the country, and it’s hurting the economy, said Greenville Area Development Corp. Chairman and former Michelin CEO Dick Wilkerson at a GSA Business Power Breakfast event today.

“It doesn’t affect our ability to attract large companies, because most counties are willing to work on a fee in lieu, but for small companies in manufacturing and development, it’s a penalizing environment,” said Wilkerson. “If there’s one thing I’d ask you to do is talk to your representatives about changing Act 388, both for economic development and education for our children.”

Passed in 2006, Act 388 was aimed at giving homeowners a break in annual property taxes by shifting the funding of schools from residential property tax revenues to sales taxes. Commercial and industrial property was not given the break, however, and opponents of the act have said the move effectively shifted extra burden of funding schools to manufacturers and commercial property owners.

“We have the lowest homeowner tax rates in the nation, but all of us end up paying because of the difficulty of developing small manufacturing,” said Wilkerson. “Education gets punished too because now it’s my sales tax, which is dynamically based on economic activity, and when there’s a downturn in economic activity, our schools suffer.”

 

For the complete story visit gsabusiness.com

 

 

Senator Sheheen’s Top Priorities: Tax Reform and Education

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Democratic gubernatorial candidate Vince Sheheen wants says the two major issues facing South Carolina are education and tax reform. And if elected he plans to tackle both issues during his first term in office. Sheheen wants to expand 4-year-old kindergarten statewide and increase taxpayer funding of public colleges in exchange for a cap in tuition costs. As a legislator, Sheheen has backed proposals to reform the way the state raises money for schools and to increase teacher pay. The average salary for teachers in S.C. in 2012-2013 was $47,900 Senator Sheheen want to gradually raise that amount to the national average of $56,400  according to the National Center on Education Statistics

Sheheen also said he wants to reform Act 388, the state’s 2006 tax overhaul that critics say led to funding inequities among school districts. That law, which Sheheen opposed, exempted owner-occupied homes from paying property taxes for school operating costs, placing that burden instead on other properties, including businesses. Sheheen said he would abolish local property taxes for school operating expenses, replacing them with what he said would be a low, statewide property tax on nonresidential properties. That way, poorer rural districts can benefit from other areas experiencing economic growth, he said. Tax reform could determine whether the state has “an equitable school system across the state,” Sheheen said. “South Carolina is either in it together or we’re not. Either the state is going to continue to move forward together or we’re not.”