If South Carolina accepts the $700 million, state funding should be adjusted to either pay down debt, or cut taxes in targets such as capital gains or corporate income. Here’s a few reasons why. Paying down state debt would offset the tremendous federal debt incurred by Congress. Most would agree that Washington has essentially stolen our grandchildren’s prosperity for short term remedies. Also, these targeted tax cuts heal our lethargic economy. We would see an immediate impact with job creation. As you know, job creation liberates individuals from the rolls of government services and enables them to become productive taxpayers.
I would also point out that Gov. Sanford’s executive budget contained cost savings allowing us to fully fund essential services like classroom expenses, indigent healthcare, and public safety. Unfortunately, the General Assembly has resisted most of these recommendations. The Legislature has ignored many cost saving items preferring across the board funding cuts that include these core functions of government. I will continue to offer healthy solutions to our budgetary woes.
You may also be interested in a recent study coauthored by the South Carolina Policy Council and Dr. Arthur Leffer, President Reagan’s chief economist. These findings concluded that the acceptance of the stimulus cash would cause a net reduction of jobs in South Carolina’s struggling economy. I have summarized these findings here.