Tom Davis Preparing Income Tax Cut
SENATOR “FRUSTRATED” WITH LACK OF MOTION ON ISSUE
S.C. Sen. Tom Davis (R-Beaufort) is mulling a major piece of income tax legislation, sources familiar with his thinking tell FITS.
The second-term Senator – regarded as the leading pro-free market lawmaker in the S.C. General Assembly – is reportedly frustrated with the failure of legislative leaders to advance an income tax bill proposed more than three months ago by S.C. Sen. Katrina Shealy (R-Lexington).
Shealy’s bill called for 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, it did NOT call for corresponding tax hikes to “make up” any lost revenue.
“We need to tighten our belt like every family in South Carolina had to do the last couple of years,” Shealy told FITS at the time. ”Like every business we need to cut out unnecessary expenses and wasteful spending.”
Davis is a strong supporter of Shealy’s bill.
“I support and will co-sponsor Katrina’s bill,” Davis told FITS in December. “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. A recent survey by the Kansas Policy Institute reveals that states with an income tax spent 42 percent more per resident than the states without one.”
Davis declined to discuss details of his legislation, but our sources in the Senate bill room say his draft legislation has something to do with the recent income tax cuts passed in North Carolina.
Whatever he proposes, we have no doubt it will be along the lines of what Shealy has unveiled as opposed to S.C. Gov. Nikki Haley’s ridiculously inconsequential income tax “relief” plan – which would have provided a family of four with roughly $80 of tax relief a year (assuming there was surplus money in the state budget).
Anyway, as soon as we know something about Davis’ plan we’ll pass the info along …
One thing is crystal clear, though … South Carolina’s “Republican” legislative leaders will ram special interest handouts through the S.C. General Assembly in a matter of days, but when it comes to providing relief to the people paying those subsidies they can’t even schedule a hearing.
Seriously … Shealy filed her bill last December.
What are fiscal liberals like Senate president John Courson, finance chairman Hugh Leatherman and “majority” leader Harvey Peeler so afraid of?