We are not sure if increasing the states sales tax would cripple the SC economy but Andy Brack believes it will. Read his story below and decide for yourself what you think of tax increase.

“If a bill being pushed to add a seventh penny of state sales tax to fix roads ends up making it through the legislature, the state would suffer mightily.

Simply put, it’s a dumb idea. Not only would it make the Palmetto State less competitive, but it would catapult South Carolina into having the highest sales tax rate in the Southeast and the second highest in the nation! Imagine an economic recruiter trying to explain that to a prospect who wants to locate here.

The headlines are full of stories about how South Carolina’s road and bridge infrastructure is beyond crumbling and needs an infusion of $1.5 billion of new money every year for three decades to keep up with what we have and deal with traffic. Why? Because we’ve been mostly ignoring the roadways and underfunding them for the past three decades. Now is time for the bill to be paid.

A plan getting significant attention is being pushed by Rep. Gary Simrill, R-Rock Hill, and colleagues on a special House committee. It would restructure the state Department of Transportation, cut the state’s 16.75-cent per gallon user fee on gas, charge sales tax on gas and boost the state sales tax by a penny. Simrill has said the plan would raise about $400 million a year.

But adding an extra penny in a state that prides itself on a competitive platform for business and relatively low taxes overall would send a terrible message to companies looking to move to South Carolina. And it would be more ammunition for retirees to skip South Carolina and head to Florida.

Currently, South Carolina has the nation’s 16th highest sales tax rate nationally and third highest in the Southeast at six pennies out of every dollar, according to the Tax Foundation. Increasing it by a penny would make it second highest nationally and first in the Southeast.

Yikes! Fortunately, there are some good ideas out there competing to be a solution for South Carolina’s road infrastructure crisis.”

To read the full article click the link below.

Brack: 7th cent would cripple S.C.’s growth