The top one-percent of income earners in South Carolina shouldered 24.8% of the state’s income tax burden, while the bottom fifty percent of earners paid only 2.2%, according to 2007 data from the S.C. Department of Revenue that was released yesterday by the S.C. Policy Council.
Also, the data shows that 31% of South Carolinians paid no taxes whatsoever.
Most telling, however, is the fact that our state has the highest income tax in the Southeast when you consider that our top marginal rate hasn’t been adjusted for inflation in years.
This means anyone earning $13,000 a year or more must pay the top rate of 7%.
Not surprisingly, that makes the whole “class warfare” argument against cutting the tax more difficult to make.
“Proposals to reduce the state income tax are commonly characterized as tax breaks for the rich at the expense of ordinary South Carolinians, but these supposedly rich citizens are actually comprised of very ordinary state residents,” the Policy Council report states. “Two married public school teachers earning the state average salary rank in the top 25 percent of state earners. A plumber and registered nurse each earning $60,000 per year fall in the top 10 percent of state income. These citizens are the real examples of what is discussed when the state identifies its elite earners.”
We’ve been saying for years that South Carolina needs to completely eliminate the individual income tax – although we’ve made that argument by highlighting the profoundly positive impact that such a move would have on economic development at the macro-level (i.e. industrial recruitment).
That still holds, but it’s looking more and more like it would help a lot of “just folks,” too.
For example, just think what would happen to our state if we pumped the $8 billion (and the controversial $740 million) in federal bureaucratic bailout money into tax cuts instead of routing it through a bunch of inept, inefficient and unaccountable government bureaucracies?
The state would have an economic renaissance that would make us the envy of the whole nation (for once).
Besides, it’s South Carolinians who are going to have to pay it all back anyway, right?
WEB EXTRA
By Crooner April 10, 2009 at 2:09 pm
You’re welcome.
By franksboy April 10, 2009 at 6:30 pm
And, all of us should send a warm and loud Thank You to the Clemson University Adminstration – who have single handedly done more to help the revenues from income tax to increae more than anyone else.
For me, I stand and say, Thank You – President Barker, Prov Helms, Counsel Steadman, (hey, I don’t look so bad in that mug shot) Kelly & ASSO – and the rest of the Presidents Staff for bestowing the handsome increase in wages to yourselves in order to contribute additional taxes to the State of South Carolina and help (?) all of us common folk.
By franksboy April 11, 2009 at 9:36 am
Croomer :-) just appreciate your being here and speaking out.
By Kirby April 13, 2009 at 10:44 am
Sic; you must have advised our Guv on taxation as he espoused the same crap about if you make $13K a year you are in the 7 percent SC tax bracket. The 7 percent bracket does happen to start at $13,150 dollars of taxable income but that has already been reduced by a minimum (if one is not itemizing) (about like those who have rabbit ears)$4500 standard deduction and $3500 for their one exemption. Thus when totaled you would have to make at minimum $22,100 to reach the threshold of the 7 percent bracket. You are just about 41 percent off on this one. So much for a journalism degree.
By fitsnews April 13, 2009 at 10:46 am
Kirby-
What about the 31% who pay no taxes?
-FITS
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