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South Carolina House speaker Murrell Smith is vowing bold action on tax “reform” this month, although he has yet to roll out a plan, has yet to specify whether his “reform” package will actually provide relief to taxpayers and – like most “Republicans” in the Palmetto State – has a long history of voting for fiscally liberal tax and spending increases.
“Now is the time for historic tax reform in South Carolina,” Smith wrote on X late Friday afternoon (January 3, 2025).
In truth, the time for historic tax reform would have been 22 years ago when “Republicans” assumed total control of the S.C. General Assembly and the governorship of the Palmetto State. During the intervening decades, South Carolina’s neighboring states seized the mantle on tax cuts – sparking gains in employment and income that have remained elusive here.
In the Palmetto State – where taxes remain high – jobs and incomes have lagged for decades as multiple misadventures in crony capitalism have left small businesses and individual income earners holding the bag.
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Instead of reducing the burden on citizens and businesses to address these pervasive economic issues, GOP-controlled legislatures have hiked taxes – while continuing blow taxpayer money on non-essential spending. Even when an accounting error revealed an extra $1.8 billion in surplus funds in last year’s budget, lawmakers refused to give a penny of that money back to the people.
Smith insists this year is going to be different – and not only that, S.C. Senate president Harvey Peeler is reportedly waiting in the wings with a plan to “one-up” whatever proposal his GOP counterpart puts forward.
At 6.2%, South Carolina has the highest top marginal income tax rate in the southeast – an oppressively high levy which continues to stifle organic job creation and job growth. Neighboring North Carolina – which has seen multiple rounds of tax cuts in recent years – is continuing to trim its top marginal rate, with plans to reduce it further (from 4.25% to 3.99%) by 2027. Kentucky – where the income rate is 4% – is currently phasing out its income tax. Three other southern states – Florida, Tennessee and Texas – have no income tax.
Making matters worse, South Carolina’s sales tax is also punitively high.
FITSNews has called for tax cuts for decades – only to be ignored by so-called “conservatives” in Columbia, S.C. Will 2025 be the year Smith, Peeler and the rest of the “Republican” establishment in the Palmetto State finally deliver? Will they finally provide significant, permanent, job-creating, income-boosting tax relief to the people of South Carolina? Let’s hope so. But beware the sleight of hand associated with the term “tax reform” – which has historically meant revenue-neutral tax shifts that don’t actually result in more money for citizens.
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ABOUT THE AUTHOR …
Will Folks is the founding editor of the news outlet you are currently reading. Prior to founding FITSNews, he served as press secretary to the governor of South Carolina. He lives in the Midlands region of the state with his wife and eight children.
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3 comments
There is no good reason not to lower the top marginal income tax rate to about 4% if not 3.5%. The number of upper middle class people pouring into our state from the Northeast and Midwest over the last 10+ years has increased the tax rolls and revenue derived thereby in a huge way- well offsetting the increase in state services required to accommodate the growth. But the comments about the “1.8B” are premature. There is/was a dispute about whether it was actual cash or not, and whether or not there were offsetting obligations of some combination of state agencies that could have eaten up or even eliminated that “surplus”- so the forensic audit was warranted and the decision to wait to do something with that amount was wise.
Republicans have been in total control of SC since the mid 90’s, shouldn’t we already be at the promised tax free utopia where nobody is taxed, but miraculously gov services (especially those that benefit the 1%) and still paid for with unicorn farts?
22 years…still Nuttin’ Blah Blah,Blah!!!!