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S.C. Sen. Tom Davis (R-Beaufort) is planning to introduce legislation this week that would reduce South Carolina’s income tax rates in a manner consistent with recent cuts passed in North Carolina.

A State House source tells FITS Davis’ draft language is “a virtual mirror” of the North Carolina cuts – which are set to return $2.5 billion to individual taxpayers and small business owners in the Tar Heel state over the next five years.

If accurate, that means Davis’ plan would drop South Carolina’s top marginal rate of 7 percent to 5.75 percent –  a savings of several hundred million dollars.

Davis declined to confirm details of his proposal, but told FITS he would be happy to discuss it after it is formally introduced.

Pro-free market lawmakers like Davis are disappointed so-called “Republican” leaders in the S.C. General Assembly haven’t acted on an income tax elimination plan proposed last December by S.C. Sen. Katrina Shealy (R-Lexington).

Shealy’s plan was pre-filed three-and-a-half months ago, but Senate leaders have yet even to hold a hearing on it.

That’s embarrassing … particularly seeing how quickly they ram through hundreds of millions of dollars in spending and borrowing for crony capitalist “economic development” deals.

Also embarrassing? The deafening silence on tax issues from S.C. Gov. Nikki Haley – who was a staunch proponent of income tax relief during her time in the S.C. House of Representatives.

Haley’s tax plan? Yeah … it’s a joke.

Pic: Travis Bell Photography