NORTH AUGUSTA - South Carolina Gov. Mark Sanford stopped by a local concrete block factory Tuesday to tout his proposed tax relief legislation.
"This is a perfect place that highlights this issue," Mr. Sanford said. "Unlike Columbia, if we're not competitive here or equal on the playing field, people can easily cross the border."
Mr. Sanford's proposal would lower South Carolina's income tax rate from 7 percent to 5 percent. The state's current rate is the highest in the Southeast, he said.
Mr. Sanford's visit to North Augusta came as the last stop in a two-day tour that included stops in Florence, Rock Hill and Anderson, where he visited small, family owned businesses.
He toured the Augusta Concrete Block Co., on the Aiken-Augusta Highway in North Augusta, just across the Savannah River.
"Border towns are on the front line of asking the question, are we competitive enough?" Mr. Sanford said.
Jim Farmer, a co-owner of the factory that has about 36 employees, said he would support the tax cut.
"Business here is definitely not bad, but it's not as good as it was a couple of years ago," Mr. Farmer said. "Any type of incentive might help, and it will help us to be competitive."
Small businesses such as Augusta Concrete Block form the basis of South Carolina's economic engine, Mr. Sanford said.
Lowering the income tax would help make South Carolina more attractive to businesses relocating to the state and to those contemplating starting a small business, he said.
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South Carolina Governor Mark Sanford speaks to the media Tuesday while visiting Augusta Concrete Block Co. in North Augusta. The governor was in town to promote his economic stimulus package. CHRIS THELEN/STAFF
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North Augusta Mayor Lark Jones said that tax rates are one factor, but not the sole factor, for businesses locating in South Carolina.
"It's one of many factors, which include schools and quality of life," he said.
"Normally, people don't take businesses from South Carolina into Georgia on taxes alone. It's the people who are starting business or are from up North that it makes it more of an issue," Mr. Jones said.
Reach Jeremy Craig at (706) 823-3409 or at jeremy.craig@augustachronicle.com.