Guess which red state may be the next one to pass a tax hike? All signs point to our home state: South Carolina.
The Republican-dominated state House of Representatives just approved a whopping 60 percent gas tax hike, and with it the Palmetto State took its biggest step yet toward making South Carolinians pay more at the pump. If the Republican-controlled state Senate follows suit, Gov. Nikki Haley may be our last hope to stop this assault on state consumers. South Carolina would join the ranks of Michigan, Iowa and Utah, all of which have GOP governors and legislatures and passed gas tax hikes earlier this year.
Despite early promises to oppose gas tax hikes, Gov. Haley proposed a 10-cent gas tax hike during this year’s State of the State speech. The increase would be spread over a three-year period, coupled with a 2 percent decrease in the state income tax over 10 years, and some unspecified reforms within the South Carolina Department of Transportation.
That’s when things started to get out of hand. Shortly after her speech, Haley softened her negotiating position by saying she could accept a 1.5 percent income tax cut instead of her original 2 percent proposal. The House then passed a bill raising gas taxes by 10 cents a gallon and providing a measly income tax cut of around $48 per year. That doesn’t even out for hard-working South Carolina families, who consistently spend a higher percentage of their hard-earned income on gasoline than Americans in all but two other states.
South Carolina is in the midst of an economic recovery, which Haley rightfully attributes to smart policies. But this year’s comparatively low gas prices are critical to supporting that economic upswing.
Regardless of what legislators do in the coming weeks, gas prices are already rising. In South Carolina they’re up 22 cents over the last month. Legislators tend to think that they can pass gas tax hikes unnoticed when prices are low, but this recent price upswing is a glaring sign that low prices aren’t necessarily here to stay.
In South Carolina, millions of dollars for road repair get diverted to pet projects in a handful of legislative districts. In fact, if the bureaucrats at the legislative-appointed South Carolina Department of Transportation get their way, we’ll spend an additional $5.3 billion on mass transit with gas tax dollars that should be used to fix our roads.
Our state government has a budget surplus, so the money for road repair is already in Columbia. Reforming the way that state agency spends money is the real way to fix our roads; in fact, it should have been the first thing state lawmakers considered. If Gov. Haley leads on this issue, it could set a precedent for states across the country facing similar transportation fund challenges.
South Carolina families continue the pro-growth momentum. After all, recent low gas prices have given folks some much-needed relief – the equivalent of a $60 billion national tax cut. No one would fault Gov. Haley for protecting taxpayers’ wallets.
As the Senate deliberates, Gov. Haley has to draw a line in the sand. True conservative leadership requires doing what’s right, including opposing a tax hike that hurts South Carolinians. She must show that she can withstand pressure from the big-government legislature. That means a veto of any bill that includes a gas tax hike – period.
Above all else, Gov. Haley needs to remember the Nikki Haley of two years ago— the governor who confidently declared: “I will not – not now, not ever – support raising the gas tax.”
Tim Phillips is the president of Americans for Prosperity and a native South Carolinian. Dave Schwartz is the South Carolina state director of Americans for Prosperity and resident of the town of Mount Pleasant. Thinking of submitting an op-ed to the Washington Examiner? Be sure to read our guidelines on submissions.
