SC

SC House Members Eye Income Tax Elimination

DONNA HICKS LEADS EFFORT TO PROVIDE TAX CUTS, NOT INCREASES …  || By FITSNEWS ||  Conservative lawmakers in the S.C. House of Representatives have heard all the talk about tax hikes and tax swaps … now they want to get their ideas into the mix. Riffing off a proposal introduced…

DONNA HICKS LEADS EFFORT TO PROVIDE TAX CUTS, NOT INCREASES … 

|| By FITSNEWS ||  Conservative lawmakers in the S.C. House of Representatives have heard all the talk about tax hikes and tax swaps … now they want to get their ideas into the mix.

Riffing off a proposal introduced prior to last legislative session by S.C. Senator Katrina Shealy, a group of House members led by S.C. Rep. Donna Hicks are reportedly preparing to offer a pure income tax cut bill – one which would completely get rid of the state’s individual income tax rate over a yet-to-be-determined period of time.

The bill could be introduced as soon as next week, we’re told – although Hicks was not immediately available to comment on her proposal.

Obviously plans to cut the income tax are nothing new.  In 2002, former S.C. governor Mark Sanford campaigned (and won) on a promise to eliminate the state’s income tax over an 18-year period, however he failed to even make a dent in the anti-competitive levy.  In fact in 2005, Sanford explicitly rejected a plan to drop the state’s top income tax rate from 7 to 5 percent as part of a disastrous sales tax/ property swap (which he later signed into law without the income tax relief).

That specific rate reduction is a centerpiece of S.C. governor Nikki Haley‘s proposed tax swap – although many conservatives doubt whether Haley’s numbers add up (or whether her promised income tax relief will really materialize after the immediate run-up in gas tax hikes).

DONNA HICKS
DONNA HICKS
According to our sources, Hicks is a respected, “consensus-building” lawmaker – one who isn’t pushing her bill to embarrass Haley or her House colleagues, but to simply stake out her belief that South Carolina would be best-served by cutting taxes, not raising or swapping them.

“Donna is well-liked and respected by the leadership,” a source close to S.C. Speaker of the House Jay Lucas told FITS.  “She is a rare example of a lawmaker who has the courage of her convictions and a constructive, consensus-building approach to advancing the issues she is passionate about.”

Shealy’s bill – which would eliminate the income tax over a five-year period – has yet to receive a hearing in the fiscally liberal State Senate.  It’s doubtful this new proposal will advance far in the fiscally liberal House, either, but it does inject a much-needed perspective into the current spending debate.

It also presents a nice contrast to the incessant clamoring for “more money” to fix South Carolina’s infrastructure – which is a victim of waste and politicization, not a lack of resources.

“They have the money to fix the damn roads, they just have a rotten, corrupt system,” one national, anti-gas tax advocate told FITS.

Exactly …

Pic: Travis Bell Photography

***

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76 comments

No Income Tax Talk March 20, 2015 at 2:58 pm

Her bill is unworkable, why take it seriously? If she wants to be taken seriously let her propose what to cut to keep the budget balanced. Of course if they did this the voters would probably join the legislators in not showing up to vote and they would be finding new jobs in a few years.

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FastEddy23 March 21, 2015 at 10:43 am

The proposal is only unworkable for Grubement. For The Taxpayers, it will be very workable.

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LD March 20, 2015 at 3:00 pm

Since that didn’t work well in Kansas or Wisconsin, we think it’ll work here. Cutting taxes isn’t the solution to every problem.

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Elfego March 20, 2015 at 8:33 pm

Stopping government waste and fraud is the real answer!

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LD March 21, 2015 at 8:33 am

First you have to define Government waste. After what the state went through several years ago– there isn’t much left to waste. As for fraud– that’s different– what areas do you believe massive fraud occurs? But in order to find fraud, you need to spend $$$$$$ and is spending the $$$$$$ going to recoup the “alleged fraud”. It typical to spend $ 1,000 to recover and prevent $1 in fraud.
Or are you just one those that believes everything government does is wasteful and fraudlent?

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FastEddy23 March 21, 2015 at 10:13 am

LOL … You really Are a Gruberment stooge.

How about a tax on government employees? (It’s called a pay cut.)

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LD March 21, 2015 at 12:51 pm

Exactly what do you want? No taxes? No government? No law enforcement? No fire protection? No health research? Leave the education to the dumber bunch than we have now?

FastEddy23 March 21, 2015 at 1:05 pm

Gosh, that’s an interesting idea! I’m glad you thought of it. Sounds like a plan.

BTW: Police and Fire Protection is Supposed to be paid for by property taxes, by property owners, that elusive 1%. That was Ben Franklin’s original idea: a property tax to pay for fire protection.

BUT do we really need a federal Gruberment at all?

Or how about this: Make the federal g’ment pay for its property taxes, too, just like you! Is there any city or county in South Carolina that collects property taxes on the Post Offices? The Coast Guard facilities? The military bases? The (profitable) National Park System? … It seems like a bunch of you folks are being short changed by your own tax collectors.

FastEddy23 March 21, 2015 at 10:10 am

Certainly one of them, fur sure. How about competitive bidding on SC DOT road (re)building?

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Rakkasan March 22, 2015 at 8:19 am

Show it to me–or STFU.

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FastEddy23 March 21, 2015 at 10:08 am

Road Apples. Unionist Propaganda.

Both Kansas and Wisconsin economies are doing just fine, thanks to those small tax cuts …

Catch up to the latest real economic news, you taxsucking Helot.

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vicupstate March 21, 2015 at 10:24 am

Horse shit. Kansas has had it’s credit downgraded and the idiot Governor has now proposed tax increases (but not on the wealth). Wisconsin has had the weakest recovery of any Midwest state. Walker’s 250k job promise has not been fulfilled.

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FastEddy23 March 21, 2015 at 12:49 pm

” … This tussle without terminus arises from legislation signed into law by Brownback in 2012 and 2013 repealing the state income tax for 280,000 business owners and 50,000 farmers while also aggressively diminishing individual income tax rates.

… “We have chosen the path of lower taxes on productivity and a smaller, more efficient government relying more on consumption taxes,” said Richard Carlson, a legislative liaison for the revenue department and a former House tax committee chairman.

… Annie McKay, executive director of the Center for Economic Growth, said the Governor’s Council of Economic Advisors didn’t make public in 2014 three of four economic status updates generated by the panel. …

… “Seems odd given the claims of how well the Kansas economy is doing,” McKay said. …

… The 2015 Legislature is in the process of confronting an estimated $600 million state budget deficit in the upcoming fiscal year. In January, Brownback proposed $210 million in income, cigarette and tobacco tax hikes to help fill this crater. Over a five-year period, his package, including large reductions in tax exemptions, would net $2 billion in extra revenue for the state.

Brownback cut state aid to higher education and K-12 schools while relying primarily on cash transfers from transportation and others areas of the budget to fill a $300 million shortfall in the current fiscal year. …

… the state’s 4.2 percent unemployment rate as persuasive evidence the economy was plowing ground in the proper direction. In January, the national rate was 5.7 percent.

*** Kansas’ rate was 4.7 percent in January 2014. ***

“We’re at 4 percent,” said [Nick Jordan, secretary of the Kansas Department of Revenue, the revenue secretary. “We haven’t been there since April 2008.” …” – Topeka Capital Journal online ( http://cjonline.com/news/2015-03-07/competing-viewpoints-characterize-kansas-economic-debate )
……..

That $300 Million “deficit” shortfall for 2015 seems rather trivial compared to the $2 Billion “extra” revenue over the next five years to 2020 … = a balanced Kansas state budget and probable surpluses over the next few years.

Despite his bible thumping, the Kansas Governor will probably be elected to just about any new Kansas office He wants in the future.

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Gross Silliness March 21, 2015 at 11:31 am

A bald faced unmitigated LIE.

Then again,what would one expect of an alternate Reality Right Wing kook?

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LD March 21, 2015 at 12:45 pm

Just facts. Must hit a nerve because the “name calling”.
Yeah right on Kansas and Wisconsin– both have massive budget shortages. Neighboring states like Missouri and Minnesota are doing much better.
I understand the program and how this works. If you that believe cutting taxes will solve all problems that is your right. But at least have enough sense to understand both sides of the argument. You don’t have to agree with either, but at least make the attempt– There are other sources of information besides FOX.

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FastEddy23 March 21, 2015 at 1:19 pm

Wrong on a couple of points: 1) Missouri is not doing better = unemployment is way above 6% state wide. Kansas = 4% so far this year.

2) I believe I do understand both sides.

There is Us, the taxpayers, and there is Them, the taxsuckers.

It appears you may be siding with Them and not with Us.

Latest snooze: Wisconsin has a budget surplus … and you don’t have to believe me, check it out.

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nitrat March 20, 2015 at 3:11 pm

Yes, nitwits.
Follow in the footsteps of Bobby Jindal, Sam Brownback, Scott Walker and Chris Christie and take us down the road to fiscal ruination brought about by indiscriminate tax cuts.
Ideology and ALEC trumps common sense and what your lying eyes tell you every single day, don’t it?

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Elfego March 20, 2015 at 8:33 pm

We are way down that road today because of give away,buying votes Democrats folks!

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aikencounty March 20, 2015 at 11:22 pm

How about the $1 billion we gave Boeing???????????

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Walker Aguila March 21, 2015 at 7:09 am

Not to disparage the comment re: Boeing, but I would like to clarify that the State did not “give” them a billion. I hate to say it but the State does not produce a damn thing, pays no tax and does not have its own money to “give”. That insinuates that they wrote them a check. Boeing pays a potful of taxes. No different than your homestead exemption or sales tax limit on vehicles is “giving” you anything. Do feel like you received something when you got the car sales tax limitation? I imagine you feel as though you paid $300 tax not that you received maybe a $600 “gift”. You simply paid less than you otherwise might have.

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Cut Spending Now! March 21, 2015 at 10:27 am

Boeing is also basically a government subsidiary.

Without all that horrible spending by the federal government ,there would be no such thing as Boeing.

FastEddy23 March 21, 2015 at 6:37 pm

As Airbust is in Europe.

Dan Ruck March 21, 2015 at 11:01 am

You lie. The state DID give millions to Boeing and Boeing, the corp. welfare queen, sdoes NOT pay a fair share in taxes.

Rakkasan March 22, 2015 at 8:25 am

A tax expenditure is government spending. Period. Full stop. Do I feel like I got something when I paid only$300 tax on the car. You bet I do. I just gained more disposable income to use for something else. And the state just had an opportunity cost that resulted in less revenue.

FastEddy23 March 21, 2015 at 9:56 am

Road Apples. You’re a Gruberment employee or a welfare slut, suggesting that everyone in the state should suffer even more so your personal pension/revenue stream is solidified.

What about the children? Do you want the next ten generations to suffer the egregious yolk of greedy Gruberment induced poverty? Do you want your grandkids to never even have a chance at an unincumbered income … savings … home …

When was the last time there was a significant tax cut for everyone?

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vicupstate March 21, 2015 at 10:21 am

When was the last time there was a significant tax cut for everyone?

That would be 2009, courtesy of Barack Obama. 40% of the stimulus was tax reductions, primarily the FICA tax

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Don"t like Barry either March 21, 2015 at 12:17 pm

whats going to happen when the already depleted medicare fund needs those dollars that Barry removed from the plan?

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Rakkasan March 22, 2015 at 8:18 am

Medicare is not a just a “fund”. It’s a revenue stream from current workers. Geez

No lockbox March 23, 2015 at 8:41 am

Actually, there is no “fund”, only “revenue stream”. When shortfalls get so large that the required amount of money printing finally causes some price increases we’ll all see that.

FastEddy23 March 21, 2015 at 4:46 pm

How convenient … And how much was that FICA “tax cut”, anyway? Not even enough to offset the reductions in weekly pay because of Medicare, Medicaid changes and other cronie give-a-ways, Oh Bummer. (Got Solindra Solar on Your roof? Got a BofA home mortgage?)

Btw: Any banker who can’t make a fat living by borrowing from the fed at less than 1% and loaning to “prime” customers at 4% Should Fail, Big or Not.

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Gross Silliness March 21, 2015 at 11:06 am

You do have all those Right Wing slang terms and canned responses down pat bo!

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FastEddy23 March 21, 2015 at 4:37 pm

Well, that’s cause I invented some of them.

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Gross Silliness March 21, 2015 at 11:05 am

Yeah,like this is gonna happen.

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Whistleblower March 21, 2015 at 5:05 pm

The House needs to address these red flag indicators from an employee at Curtis Loftis State Treasurer’s Office.

There’s significant evidence of fraudulent activity coming from the State Treasurer’s Office. How was the Treasurer’s Office able to pay the Bank of New York Mellon’s custody bill’s last summer and fall? Were funds diverted from other agencies and budgets such as DMV funds? Do Chief of Staff Clarissa Adams’ initials appear on the approval form for the diversion of these funds? How much did this six figure payment cost? Did the legislature give approval in the state budget? Why has so much money been diverted from Unclaimed Property this year? Did Curtis or Clarissa approve this transaction? What is it paying for? Why have fees increased so much in the Local Government Investment Program? What are they paying for? Who are the contract employees making hundreds of dollar every hour they work to implement an IT system? Have there been cost overruns? How much did settling the Amick case cost the taxpayer? Did Curtis break the law? Did he settle it to avoid it coming up the primary?How much does the State still owe the Bank of New York? Why does the State owe money after the lawsuit was settled? Did the settlement funds come in as cash? Or was it a reduction in the amount the State owes Bank of New York?

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leftSC March 22, 2015 at 5:49 pm

Ah yes down the Dickensian path – lets eliminate all taxes and let the hat go around for roads and schools – who needs education especially higher – we are so blessed not having to think and understand the world. And roads? – maybe we can all get inspired by Mad Max again and off-road will be everywhere. We will drive up I97 fighting for petrol – survival of the fittest. As long as we have our guns we can defend ourselves – against who? Whoever! Becoming a third world country will reduce our risk of invasion ! Just me on my land where my trailer stands with my dog and gun – what a wonderful picture in the sundown…teeth falling out, dying of minor infections – survival of the fittest – one way to reduce SC’s impact on the future – eliminate ALL taxes and governmental services! Roll back history 2-300 years.

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ColaPropertyOwner March 20, 2015 at 3:12 pm

Repeal Act 388

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Taos March 21, 2015 at 7:17 am

Why? If you own just one residential property in SC it saves you money each and every year… but yeah, expand such savings to businesses and vacation home (2nd home) owners as well.

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fran March 20, 2015 at 3:37 pm

Let’s erect toll roads on I95…all those vacationers bound for Disney can cough up some bucks to pay for OUR highways…

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Dan Ruck March 20, 2015 at 3:57 pm

I-95 isn’t “our road,” stupid. Taxpayers everywhere paid for it.

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Sivio Dante March 20, 2015 at 4:03 pm

That “I” in I-95 doesn’t mean the road is yours, Fran.

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Taos March 21, 2015 at 7:25 am

I agree, and the jokers who’ve responded to you who are against this can’t have brains… what part of toll roads everywhere up North and in Florida do they not get? Seriously, those liberal yankees below probably tout the greatness of their region constantly over SC regarding infrastructure but God forbid SC seeks to emulate their funding structure… yep, pure hypocrisy!

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FastEddy23 March 21, 2015 at 10:38 am

Before SC can add toll booths to that federal highway, the SC taxpayers will have to buy that highway from the other 49 gas tax paying states.

No kidding. Pennsylvania tried it with I-80 and the Supremes shot them down.

Indiana did it with that same I-80 and they had to buy it first … Now Indiana is stuck with that huge revenue looser. (Indiana recently turned the toll collections over to a private contractor … To stop all of the g’ment fraud and abuse.)

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Dan Ruck March 20, 2015 at 3:55 pm

Eliminate income taxes altogether and just rely on sales taxes? That will pretty quickly destroy our economy in favor of a barter system. How about letting people just pay voluntarily what they think schools and roads and police and fire protection are worth? Then let the police and firemen decide which homes deserve full protection. Maybe neighborhoods could vote on which houses and which families deserve a #1 rating.

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sparklecity March 20, 2015 at 5:39 pm

Looks to me it boils down to monkeying around a little and “Tweaking this and that” not elimination of the current way that South Carolina collects taxes.
If Tennessee,Nevada, and Florida don’t require filling out a state income form (and I know for a fact that Florida and Tennessee have FAR better roads) what makes you think South Carolina’s individual tax makes this state better than them.
It takes me LONGER to complete the SC 1040 than it does my federal 1040-A for crying out loud!!!!
The legislature dosen’t have the balls to gut this complicated tax system that South Carolina has and emulate other states and are in better shape than South Carolina on so many levels.
If its good enough for Florida,Tennessee, Nevada, New Hampshire and several other states that don’t require individuals to file state taxes what makes South Carolina is so special?

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Dan Ruck March 20, 2015 at 8:12 pm

God, yes! Let’s just decide because something works for another state it will work in SC. I don’t care. I’m retired and pay no income tax.

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aikencounty March 20, 2015 at 11:25 pm

Well SHIT!
I am retired and I paid over $11 k federal and state!
I been robbed!!!!!!!!!!!!!!!!!

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Dan Ruck March 21, 2015 at 10:01 am

Check your earnings level against what the IRS allows. The allowance is pretty danged generous, actually. If you’ve overpaid you can apply for a refund.

FastEddy23 March 21, 2015 at 10:32 am

… Then let’s play spin the paper shuffle bottle with the taxsuckers and see who has to kiss ass.

aikencounty March 21, 2015 at 8:58 pm

All I know by looking at CPA’s tax return:
$98,333 gross income on the two of us.
All of it less $16k from instructor job , the remaining $82 was from pension payments(3) and both our Social Security.

Dan Ruck March 22, 2015 at 9:51 am

Your CPA told you about this. Get off the pity pot.

FastEddy23 March 21, 2015 at 10:31 am

Mmmmm … I’m retired, too. My fed/state/local taxes take All of my Social Security times two. … So I have to keep working in retirement just to pay my taxes.

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LD March 21, 2015 at 12:58 pm

Apparently the system has worked well for you. If your SS is $ 20,000 and you are paying $ 40,000 in taxes– you’re doing well. Congratulations

FastEddy23 March 21, 2015 at 5:01 pm

That’s what my bookkeeper keeps saying, until I have to lay off another employee to pay her.

Gross Silliness March 21, 2015 at 7:27 pm

Another Lie.

Dan Ruck March 20, 2015 at 8:20 pm

Abolish all taxes! Fire all the policemen and firemen and school teachers! Let individuals hire bodyguards as they see fit! When your house catches fire call the fire dept. and say you’ll pay what the firemen want to drive over and spray some water.

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FastEddy23 March 21, 2015 at 10:25 am

… then celebrate The Second Amendment? … If only!

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FastEddy23 March 21, 2015 at 10:24 am

If only … really!

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vicupstate March 21, 2015 at 10:52 am

Let me explain it to you. This ain’t FL or Nevada.

Nevada and FL both have a shitload of tourists that dumps lots of money into the economy and (relatively speaking) don’t require a lot of services (ie schools). Neither state has the level of poverty or incarceration that we do.

Gas taxes (soak the tourists) in NV are DOUBLE what they are here. FL is even higher than that. Property taxes in FL are significantly higher than here, in some areas it is on the order of double. Buy a car in FL and pay the sales tax on the FULL amount. There is no $300 maximum as there is here.

Tennessee has a almost 10% sales tax and you pay it on EVERYTHING. In SC the 6% sales tax is exempted from MORE THAN HALF of all purchases. Keep in ind the sales tax on FOOD in SC is 0%.

About 85% of the land area in Nevada is practically empty of people. That has to bring a huge economy of scale.

When ALL taxes at the state and local level are combined into the comparison, SC taxes is in the bottom half of all states.

The average SC residents pays 3.1% of their income in state income tax, once exemptions and deductions are factored in.

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Beartrkkr March 21, 2015 at 12:20 pm

And get your toll money ready for those nice Florida roads…

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FastEddy23 March 21, 2015 at 10:21 am

If only …

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euwe max March 20, 2015 at 5:59 pm

Now that the Republicans have both the senate and the house, they should be able to eliminate federal taxes as well.

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Iftheyonlyknew March 20, 2015 at 9:07 pm

Don’t forget important things like SC proclaiming Jesus as SC’s Lord and Savior. Mind you, not the High Church’s interpretation and versions, it’s got to be about the “personal relationship”.

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Dan Ruck March 21, 2015 at 11:14 am

SC proclaimed Jesus SC’s lord and savior? Ha! Ha! I missed that.

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FastEddy23 March 21, 2015 at 10:14 am

If only …

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euwe max March 21, 2015 at 11:41 am

Everyone want go heaven – nobody want dead.

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FastEddy23 March 21, 2015 at 11:30 pm

… So, we should get used to some taxsucker at the Pearly Gates selling admission tickets? … Forever?

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euwe max March 22, 2015 at 5:38 am

Everyone wants to get rid of taxes, but no one wants to be that guy, or vote for him.

Fiscal Conservative March 20, 2015 at 7:08 pm

I hope the House is successful in eliminating the income tax. Just a few weeks ago Treasurer Loftis started a petition that would keep the income tax at it’s current rate. What a RINO!

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Elfego March 20, 2015 at 8:31 pm

Another way to screw the lower class!

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FastEddy23 March 21, 2015 at 10:46 am

Right! The lower classes are being screwed right now, paying way more than their fair share. Elimination of the state income tax would be a huge benefit for the lower and middle classes.

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LD March 21, 2015 at 1:00 pm

Bullshit on that—- lower classes don’t have enough taxable income to pay any SC income taxes now.

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Guest March 20, 2015 at 8:36 pm

“They have the money to fix the damn roads, they just have a rotten, corrupt system,” one national, anti-gas tax advocate told FITS.”
You mean Erick Erickson, of RedneckState America fame?

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Can I kick the ball this time? March 20, 2015 at 10:47 pm

Republicans bring this shit up every time the hoi polloi get angry. It’s nothing more than empty talk, like most of the GOP pretends to be “for”.

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FastEddy23 March 21, 2015 at 2:41 pm

Just saying’

Federal Personal Income Tax Revenues for 2011: $1.04 Trillion Dollars.
Estimated Personal Income Tax Revenues for 2014: $1.80 Trillion Dollars.

Federal expenditures for 2011: $37.1 Trillion Dollars.
Federal republicrat Budget Proposal for 2016: $43 Trillion Dollars.
Federal democrat Budget Proposal for 2016: $47 Trillion Dollars.

As one can see, if the federal Personal Income Tax were removed from the equation Entirely, the budget proposals from either party can still be met … so

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idiotwind March 23, 2015 at 9:34 am

looks like you include social security and medicare on the spending side but not on the tax revenue side.

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Matt March 21, 2015 at 7:43 pm

Seriously, are these house members total morons! Enough of these tea party dopes who are fiscally clueless.

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