Gov. McMaster, S.C. House leaders announce income tax cut proposal
COLUMBIA, S.C. (WCSC) - Governor Henry McMaster, joined by House leaders and members of the S.C. House Republican Caucus, on Tuesday announced a state income tax cut proposal.
The proposal advances an earlier plan by two years and would immediately lower the tax rates of those currently paying 4%, 5% and 6% to just 3%. The proposal would also drop the current 7% tax bracket to 6.5%.
McMaster called the proposed tax cuts a “pay raise for everyone who is working for a living.”
“This tax cut will start an avalanche of change and prosperity unlike anything we have seen and add one more reason for South Carolina to have great success in the future,” McMaster said.
Officials say the proposal follows new economic forecasts for the state budget that include an additional $621.5 million in recurring funds and $921 million in nonrecurring funds. The new forecasts bring total state funds to over $1.5 billion in recurring funds and $2.9 billion in nonrecurring funds.
“It is a basic Republican principle that we keep taxes low and I believe when there is a surplus of money flowing into our coffers it needs to be returned to the taxpayer,” S.C. House Speaker Jay Lucas said. “We are in a unique situation this year where we have the opportunity to provide tax relief to every South Carolinian while still maintaining the economic success we have experienced in the past.”
House Ways and Means Chairman Murrell Smith said South Carolina already has the 10th lowest effective tax rate in the nation.
Copyright 2022 WCSC. All rights reserved.