Lobbyists Write Our Tax Code

If you have never visited our Statehouse in Columbia, I encourage you to do so. It features magnificent architecture and splendid materials, including marble floors. When you walk up to the second floor, the House Chamber is on the right, the Senate Chamber is on the left and in the middle is the Lobby.
What you will notice in the Lobby is an army of impeccably dressed men and women whose shoes and suits are probably worth more than my 2006 Saturn Ion. They are the Lobbyists, who are paid to draft and promote legislation which benefits their clients. They have a lot of clout with members of our General Assembly.
I recently attended a hearing in the House Ways and Means Committee which considered 11 bills, including the South Carolina FairTax Act (H-3211). I think I was the only person in the hearing room who was not a Representative, a House staff member, or a Lobbyist.
I was there as a citizen activist supporting the South Carolina FairTax Act. My organization, SC FairTax, cannot afford a paid Lobbyist. I presented the bill to the 5-member subcommittee, explaining how it would eliminate the state income tax immediately, replace the lost income tax revenue by repealing the numerous sales tax exemptions, generate $450 Million in annual revenue for road repairs by applying the 6% state sales tax on gasoline and diesel fuel, and grow the small business economy in South Carolina by enabling consumers to increase their disposable income by hundreds of dollars each month.
The subcommittee voted to advance the bill to the full Ways and Means Committee by a 4-1 vote. The opposition to this tax system overhaul came from a Lobbyist representing the SC Press Association. He claimed that the SC FairTax plan would put newspapers out of business by taxing newsprint. I informed him afterward that nothing going into the production of newspapers would be taxed, including newsprint, copy machines, computers, office furniture and delivery trucks.
After the hearing, I was focused on explaining to newspaper editors across the state that the SC FairTax plan would actually lower their production costs and increase their profits. Thousands of small businesses would benefit from an expanded consumer base and have the profits available to buy advertising in newspapers, radio, TV and other media.
That plan abruptly changed when I got back to Charleston and got a call from Rep. Chip Limehouse (R-Charleston) that the Ways and Means subcommittee reconvened in the afternoon and changed its vote on the bill. Rep. Limehouse was the only member who ultimately voted to advance the South Carolina FairTax Act to the full committee.
I soon realized that the subcommittee changed its vote at the request of Lobbyists who had pushed for income tax credits for their clients. If South Carolina repeals its income tax, there will be income tax credits available to various special interest groups. Our economy would grow dramatically, but there would be no special treatment for industries with the ability to hire Lobbyists.
I am determined to make the case to our legislators that a zero income tax policy will do much more good for the people of South Carolina than our existing policy which gets to confer special benefits to well-healed corporations or industries. Let’s focus on prosperity for all!
News Nuggets:
• Likely Presidential candidate Dr. Ben Carson headlined a Statehouse Rally to promote the federal Balanced Budget Amendment resolution (H-3096/S-30) sponsored by Rep. Peter McCoy (R-James Island) and Sen. Larry Grooms (R-Daniel Island). Dr. Carson noted, “While I am a brain surgeon, it doesn’t take a brain surgeon to realize that America must live within its means.”
• I passed the gavel as Charleston County GOP Chair to attorney Larry Kobrovsky. Larry is a strong civil liberties advocate and a supporter of education reform. Our party meets the second Monday of each month at 7 pm at North Charleston City Hall – please join us on May 11!
• The Charleston County Republican Party supported Maurice Washington for Mayor of Charleston and Wisconsin Gov. Scott Walker for President in a straw poll at its recent County Convention.
• The South Carolina House rejected a bond bill to take on additional debt to facilitate road repair. It appears that Senate Finance Committee Chair Hugh Leatherman will offer legislation to borrow money for road repairs and other projects. Gov. Nikki Haley has threatened to veto any legislation which adds to our state debt. It takes a 2/3 vote in the House and the Senate to override a veto.
John Steinberger is the former chairman of the Charleston County Republican Party, a leading Fair Tax advocate, and a West Ashley resident. He can be reached at John.steinberger@scfairtax.org.