National Groups Eye SC Income Tax Cut Plan
S.C. Senator Katrina Shealy’s proposal to eliminate South Carolina’s income tax over the next five years is receiving attention at the national level, sources tell FITS.
Multiple national groups have contacted Shealy (R-Lexington) and expressed interest in learning more about her plan, activists familiar with the conversations tell FITS.
Last month Shealy proposed the complete elimination of all brackets of the state’s individual income tax – a.k.a. the levy paid by all taxpayers and the vast majority of South Carolina businesses. Best of all, her plan would not offset this “lost revenue” with tax increases elsewhere in the state budget.
It’s a pure tax cut, in other words …
“This bill could allow small business owners in South Carolina to keep more of their hard-earned income and, in turn, give them a greater opportunity to reinvest in their businesses and hire more employees,” Shealy said.
Shealy’s plan has been endorsed by S.C. Sen. Tom Davis (R-Beaufort), the leading pro-free market, pro-liberty lawmaker in the S.C. General Assembly.
“Eliminating the state income tax would do two important things: First, it would promote economic growth in South Carolina. Simply put, zero-income-tax states grow faster and create more jobs. Second, eliminating the income tax would force South Carolina politicians to control state government spending,” Davis said.
Given the big government modus operandi of the “Republican” establishment in South Carolina – most notably Gov. Nikki Haley, House Speaker Bobby Harrell and Senate finance chairman Hugh Leatherman – Shealy’s plan faces an uphill battle legislatively.
Having said that, this is an election year and “Republican” elected officials who are not on board with tax relief could find themselves facing significant pressure … assuming these national groups are willing to get in the game.
Let’s hope they are …
North Carolina recently passed significant income tax relief, and every day the Palmetto State waits to follow suit is a day it falls further behind …