COLUMBIA — South Carolina Gov. Nikki Haley says it is unacceptable for the Republican leaders of the state House and Senate to be arguing about giving tax relief to small businesses in the budget.

The Republican governor said Tuesday it’s OK for budget negotiators to be gridlocked, but not over helping small businesses.

The House and Senate are at an impasse over reducing small business owners’ income tax rate. Negotiations broke down Monday over the amount and method of distribution.

In a $6.7 billion spending plan, the stalemate is now over $22.5 million.

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It began as a $45 million impasse. The House wanted an immediate $60 million cut, and the Senate wanted $15 million.

The fiscal year starts Sunday. Haley says the battle of egos between House and Senate leaders needs to stop.