A state cannot improve the lives of its residents by becoming the "discount store of the U.S." warned Dr. William Fox, the respected Director of the Center for Business and Economic Research at the University of Tennessee, in a speech at the Annual Economic Outlook Conference in South Carolina this week. Fox said of South Carolina's tax structure, "If you want to be the discount store of the U.S. that certainly is an option. But it is not the way to create a rising income relative to the U.S. and the rest of the world."
According to The State, Fox reportedly said that South Carolina "needs to put in place a tax system that grows with the need for education and infrastructure, "so that you can invest in yourself." Fox and other colleagues are consulting with the Palmetto Institute (a South Carolina based think-tank) regarding ways to improve the state's tax structure. Let's hope that in the coming legislative sessions South Carolina follows Fox's advice instead of attempting to become the tax policy equivalent of K-Mart.