By Scott Miller
Staff Writer

Don’t automatically expect an income tax cut following this spring’s legislative session.

Instead, look for a legislative battle over Gov. Mark Sanford’s plan to raise the cigarette tax to offset general revenue losses from an optional 50% tax cut.

Speaking Wednesday at the S.C. Chamber of Commerce’s annual Business Speaks convention in Columbia, several key lawmakers said any revenue gained by raising the smoke tax should fund health care or pay for tax credits on insurance premiums employers pay for employee health care plans.

“Cigarette tax revenue, in my opinion, has to go to health care,” said Sen. Hugh Leatherman, R-Florence, chairman of the Senate Finance Committee. “The governor’s plan only helps the wealthy. I will never go there.”

House Minority Leader Harry Ott, D-St. Matthews, echoed several comments in favor of funneling cigarette tax revenue into health care, as did Sen. John Land, D-Manning, and House Judiciary Committee Chairman Rep. James Harrison, R-Columbia.

Sanford repeatedly has said he won’t support a tax increase without a tax cut to offset it. His plan would raise the cigarette tax 30 cents per pack to 37 cents, while offering an optional 50% income tax cut to those who forego deductions.

Business leaders also want that cigarette tax revenue to fund health care in some way. It was one of the priorities Chamber Government Relations Director Darrell Scott outlined Wednesday.

The chamber is also pushing for state and local spending caps, but several lawmakers attending the event said those caps are unlikely to be implemented this session because the Legislature needs to first study any potential impact.

The chamber also called on lawmakers to extend property tax relief to commercial property owners, crack down on illegal immigration, expand South Carolina’s ports, pump more money into tourism efforts, continue support of ongoing work force development programs and invest in roads and bridges.