Until the recent financial crisis, South Carolina benefited from a robust economy. During those years of economic prosperity, we allowed our elected officials to significantly expand state government. Our economy is now in recession. We are faced with the sobering problem of having a state government that has overcommitted the taxpayers during a time of financial crisis.
We must reduce government spending. It is not enough to merely cap state spending. If we are to recover quickly from the recession, the citizens and businesses in South Carolina need significant reductions in their tax burden. Furthermore, with a decrease in tax revenue, state agencies must become more efficient, accountable and transparent in their operations.
To achieve these reforms, I will focus on the following issues during the 2009 legislative session –
1. Revenue – Currently, our tax system reflects the influence of special interests in our state. Sales tax exemptions need to be eliminated across the board. The Competitive Grants Program needs to be abolished. Corporate tax rates must be lowered, not just for new companies as a bounty for moving here, but also for local businesses as a reward for years of contributing to South Carolina’s economy and job pool. Individual income tax rates must be decreased.
2. Budgeting - Currently, each state agency uses its prior year budget as a base to determine its needs for the next year. This process encourages expansion of the bureaucracy and discourages any reductions in spending. We must demand that all state agencies use a "zero based" budgeting process to determine their needs for the coming year. In other words, they need to prove why they need every dollar that they receive from the pockets of taxpayers.
3. Spending – Currently, as the economy grows state spending swells, especially during times of economic prosperity. We must recognize that prosperity comes from the hard work of individual South Carolinians, not the state government. Unfortunately, we have allowed the Legislature to take out a “blank check” and spend our surplus tax revenue.
By capping the overall level of state spending during times of prosperity, we can put the resulting tax surpluses into reserve funds to protect us during future recessions,
4. Accountability – Currently, most bills are passed in the Legislature without any record being made of who actually voted for what. South Carolinians deserve to know how their representatives vote especially during the budgeting process. Recorded voting is not just a necessity – it is just plain common sense.