Why all this talk about raising the gas tax to pay for road repairs when there is a much simpler way to do it? South Carolina could make a lot more money by repealing its ridiculous $300 sales tax cap on automobiles.
In the Oct. 4 paper, there were three large ads for automobile dealerships. They listed a combined 75 cars at a total cost of $1,926,533. The 6 percent state sales tax would generate $115,592, rather than the $22,500 that is collected from the $300 maximum per car. And that is just for three dealerships. A few days ago, one dealer advertised on TV that he had 600 cars for sale at $35,000 each, a total value of $21 million. At 6 percent, this would generate $1.26 million, instead of just $180,000.
Seems pretty obvious to me that repealing the $300 cap would generate money a whole lot faster than adding a penny or so to the gas tax.
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