GOP SENATOR WANTS STRINGS-FREE TAX CUT …
The GOP lawmaker – who was elected with Haley’s support as a petition candidate in 2012 – thinks the governor’s income tax reduction falls well short of what the Palmetto State needs to make up for the money being sucked up by Haley’s proposed gas tax hike.
To say nothing of stimulating economic activity …
“I was hoping we would go for real tax relief which I don’t think this small two percent income tax cut indicates,” Shealy said of Haley’s proposals. ” I am not even sure this is a tax swap at this point. We wouldn’t be saving South Carolina taxpayers enough to make up for a 10-cent increase in the gas tax.”
Haley claims her proposal would amount to a net tax cut of $5.5 billion over the next ten years – but she has yet to show her math (and her numbers have been far from reliable in the past).
By contrast, Shealy has proposed the complete elimination of the state’s top marginal income tax rate (which currently stands at seven percent) – with no corresponding tax increase.
Also, Shealy would get rid of the levy in half the time …
“My bill totally eliminated personal income tax over a five-year period at a rate of 1.4 percent per year,” she said.
Haley’s plan? It would reduce the rate by 0.2 percent per year.
Haley’s tax swap is intended to create new revenue for South Carolina’s infrastructure … which continues to deteriorate due to a lack of project prioritization (and excessive government spending on non-core functions).
Shealy’s bill? It’s intended to create economic growth … the kind that would be choked off if “Republican” tax swappers have their way.
“I am serious about fixing our roads we just need to find a way to do it without digging into the pockets of South Carolina citizens,” Shealy said.
We agree … and so do others.
This isn’t the first time Shealy has stood up to Haley. Last year she criticized the governor’s mismanagement of the S.C. Department of Social Services (SCDSS) – earning her Haley’s undying ire. Of course unlike a lot of conservative lawmakers, Shealy doesn’t just criticize – she offers concrete reform proposals.
We urge lawmakers to adopt Shealy’s income tax cut – and reject the various “swaps” proposed by Haley and other legislative leaders.
“South Carolina taxpayers simply cannot afford to keep shelling out billions of dollars on unnecessary government while critical infrastructure needs go unaddressed,” we wrote earlier this month.