One of our perennial hobbyhorses on The State‘s editorial board over the years was our demand for comprehensive tax reform.
We wrote about it a lot, whether you remember it or not. Which you probably don’t. It’s not the sort of issue that makes most people’s hearts go pitter-pat — even those interested in tax changes. (Readers would complain, “All you ever write about is the Confederate flag!” Or video poker. Or the lottery. Or whatever they didn’t want us to write about. To which I would say, “No we write about a lot of issues.” “Like what?” “Like comprehensive tax reform.” “Comprehensive what…?”)
Our point was this: Instead of making more and more piecemeal changes to tax policy, further distorting the tax burden in the state, how about if we act like we have some sense and do this: Figure out what it costs to do the things we agree state government should do, figure out how much it costs (that is to say, budget reform), and then come up with the fairest, least burdensome, most reliable ways to raise the money to pay for it.
Instead, year after year, lawmakers came charging into Columbia, determined to give this or that tax break to this or that constituency group — whoever was yelling the loudest at a given moment (say, people who owned homes that were rapidly appreciating) — without any regard to the system overall. Increasingly, that led to such things as relying less and less upon such stable and rational revenue sources as real property, and more and more reliance on such volatile — and oppressive to the economy — sources as sales taxes.
Years ago, I could have given you a list of specific things that needed addressing, but I’m not as up-to-date on the details today. Of course we should do away with the sales tax cap on cars. In fact, we should take all sales tax exemptions and throw them onto the table. Let the constituency for each have its say, but in the end, spread the pain around. You can’t make everybody happy.
(This is Doug’s cue to say, “Why don’t you start by calling for doing away with the sales tax on newspapers?” To which, as usual, I say, “Why? That’s not one of the more egregious ones, like the auto cap. It’s pretty average. Throw it on the table with the rest, and let only the most rational exemptions, if any, survive.” I’d be surprised if the newspaper one was allowed to stay.)
Trouble is, there’s little appetite for the holistic, good-government approach. Until maybe now:
Speaker Lucas Appoints House Tax Policy Review Committee
Member panel tasked with offering suggestions to reform outdated tax code
(Columbia, SC) – House Speaker Jay Lucas (District 65-Darlington) today appointed fourteen members of the SC House to serve on the House Tax Policy Review Committee. This ad hoc committee will be responsible for reviewing South Carolina’s current tax code and submitting suggestions for reform to the Speaker before the beginning of next legislative session. The group will hold its first meeting next Tuesday, August 30th, 2016, at 2 P.M. in room 516 of the Blatt Building.
“Our outdated tax code needs a dramatic transformation in order to promote economic competitiveness and increase the size of our citizens’ paychecks. Achieving this difficult task is long overdue, but necessary to ensure our tax code is fair for our taxpayers. A broader and flatter tax code will help continue to spur job growth and provide greater opportunities for South Carolina families,” Speaker Jay Lucas stated.
Speaker Lucas selected Speaker Pro-Tempore Tommy Pope (District 47-York) to serve as Chairman of the House Tax Policy Review Committee. Additional members include: Rep. Todd Atwater (District 87-Lexington), Rep. Bill Bowers (District 122-Hampton), Rep. Mike Burns (District 17-Greenville), Rep. Joe Daning (District 92-Berkeley), Rep. Chandra Dillard (District 23-Greenville), Rep. MaryGail Douglas (District 41-Fairfield), Rep. Shannon Erickson (District 124-Beaufort), Rep. Joe Jefferson (District 102-Berkeley), Rep. Jay Jordan (District 63-Florence), Rep. Roger Kirby (District 61-Florence), Rep. Mandy Powers Norrell (District 44-Lancaster), Rep. Bill Taylor (District 86-Aiken), and Rep. Anne Thayer (District 9-Anderson).
“Representative Tommy Pope and the bipartisan members of this ad hoc committee were individually selected because of their leadership abilities and knowledge of the tax system. I am confident that this diverse group will successfully begin laying the groundwork for significant tax reform,” Speaker Lucas concluded.
Will this group come up with something based on reason instead of which wheel squeaks the loudest? The odds have always been against it, but I’m going to allow myself to hope…