[South Carolina]… legislators seem convinced that there are only three things they can do about taxes: Raise them, slash them, or ignore the issue. But there\u2019s a fourth option, and it works and is desperately needed whether they ultimately raise taxes, lower them or leave them just where they are: Fix them.<\/p>\n
Our tax code was built on the tried-and-true \u201cthree-legged stool\u201d\u009d formulation, deriving roughly equal revenue from the sales, income and property taxes. But that balance has become skewed, as we rely far too heavily on the sales tax, making our tax system much too volatile. And there are significant problems within each major tax \u201d\u201d as well as with the minor taxes \u201d\u201d that create gross inequities and prevent revenue growth from keeping pace with economic growth.<\/p>\n
The most obvious, smack-you-in-the-face problem is our 85 sales tax exemptions, which result in more goods being untaxed than taxed and are the target of a lawsuit pending in the state Supreme Court. And the grossest example of bad exemption policy is the $300 tax cap on automobiles, which means people who buy clunkers pay the same tax as those who buy luxury cars \u201d\u201d and boats and planes.<\/p>\n