The great tax heist

Millions in taxes secretly spent

Rick Bundrett
Posted 5/27/21

Many SC lawmakers say they would support laws to show how tax dollars are spent.

But, critics say, a similar rule at the Statehouse has been ignored.

According to The State newspaper, $44 …

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The great tax heist

Millions in taxes secretly spent

Posted

Many SC lawmakers say they would support laws to show how tax dollars are spent.

But, critics say, a similar rule at the Statehouse has been ignored.

According to The State newspaper, $44 million quietly went to more than 180 projects last year.

The newspaper in December 2019 reported more than $30 million in pet projects – called earmarks – were hidden in the state budget although taxpayers and most lawmakers were unaware of it.

That’s $6 in taxes for every man, woman and child in the state.

Few described what the money was for, how it was spent or if the project was successful.

For example, more than $15 million went to groups with close ties to lawmakers such as:

• Sen. Darrell Jackson, D-Richland, sent more than $800,000 to a nonprofit connected to Bible Way Church where he is pastor.

• House Minority Leader Todd Rutherford, D-Richland, steered a hidden $450,000 to a small Charleston nonprofit run by his now-mother-in-law.

• Rep. Kirkman Finlay, R-Richland, sent $325,000 to a nonprofit founded by his family and run by his friend and political associate.

In more than a year investigating the secret world of earmarks, the newspaper’s reporters discovered at least $104 million in projects over 5 years.

The reporters asked all 170 lawmakers about this and 95% of them responded.

• Nearly 81% of all lawmakers said they would support a new law that would require all hidden earmarks, or pass-throughs, to be publicly posted on the Statehouse website for all to see.

That would include details that show which lawmaker requested the money, where it’s going and why.

• 83% said they would support another law that would ensure all recipients fully account for how the money was spent, something now required but rarely enforced.

“That’s good to hear,” said Senate Majority Leader Shane Massey, who represents Lexington County.

He said he is willing to sponsor such a bill.

“I think it’s easy for people to say they support accountability and transparency.

“It’s another thing when you put it on paper and they start picking it apart.”

At least 41 of the 45 senators said they would support new laws for hidden earmarks disclosure.

Only 4 said no or didn’t answer.

Sen. Hugh Leatherman, chair of the powerful Senate Finance Committee which dishes out earmarks, was the only lawmaker who avoided reporters in person, by phone and after receiving the questions from his chief of staff.

Massey credits the support to a new Senate rule he sponsored that requires the disclosure of earmarks — both hidden and line item projects — during the planning process.

The House of Representatives, which has a similar rule that is not being followed, was more split although a majority say they would support it.

About 73% of those interviewed said they would support the same legislation that requires detailed lists of earmarks to be posted.

16 House members refused to answer.

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