|
Getting your Trinity Audio player ready...
|
The goal of tax policy should be simple: Subsidizing core functions of government with maximum efficiency while imposing minimal burden on the economy and its citizens. The more of our hard-earned money individuals and small businesses can keep, the more we can invest in the economy and the more jobs and prosperity we can create.
This, in turn, reduces the need for dependency – and the bureaucratic state which inefficiently/corruptly administers the dependency economy.
In keeping with this ideal, FITSNews has spent decades advocating on behalf of lower taxes and less government – but for years we’ve been ignored by South Carolina’s leaders. Instead, “Republican” lawmakers have raised taxes, ballooned budgets and dramatically expanded welfare (corporate and otherwise).
This year was supposed to be different. This year was going to be different, we were promised.
Heading into the 2025 legislative session, so-called “Republican” leaders vowed that after years of sustained bureaucratic bloat real tax relief was on the way. Unfortunately, when their proposal belatedly dropped (two-thirds of the way through the 2025 legislative session) the envisioned relief was simply not there.
In fact for most middle class South Carolinians, the plan being pushed by Columbia politicians will likely wind up being a tax hike.
***
According to an analysis of the legislation prepared by the S.C. Freedom Caucus, the “Republican” bill – H. 4216 – would “constitute a huge tax hike for the majority of the state while offering a modest tax cut to the wealthy.”
“The most offensive part of this crony capitalism plan is that they are telling voters it will save them money,” a post from the caucus noted. “The bottom line is House leadership is lying to you.”
“They are marketing this bill as a decrease because it technically moves the income tax rate down but increases the money from which they can draw,” the caucus post added. “This specific formula will hurt lower and middle class families the most.”
Tax hikes on middle class income earners would climb by anywhere from $327 to $924 – hitting income levels ranging from $40,000 to $80,000 the hardest, per the Freedom Caucus analysis. Meanwhile, “relief” would not take effect until income levels hit $115,000 – and then it would total just $4.
***
***
“S.C. House Republican leadership would rather jump through hoops to figure out how to keep their revenue stream flowing to dole out your money for pet projects and wasteful spending,” the caucus noted. “(B)ut they know they are in hot water with voters for our highest in the Southeast tax rate, so they have conjured up a manipulation scheme to attempt to convince voters they are lowering taxes while they are actually robbing blue collar workers blind on the back end.”
Legislative leaders claim their bill would provide $200 million in net tax relief – out of a budget of $41.7 billion (and a year-over-year spending increase of $1.5 billion). In fact, a fiscal impact statement (.pdf) released this week by the state asserted the legislation would yield a meager $216 million net tax cut.
But it’s not just the anemia of the “cut” in dollars – it’s the totally underwhelming scope of the package.
The same fiscal impact statement (again, prepared by the state) noted that 21.2% of tax returns would see no change in their state tax liability under the plan while 19.4% of returns would see a reduction totaling $1.15 billion.
The kicker? A whopping 59.4% of returns – six out of ten, essentially – would see an increased tax bill totaling $938.7 million.
***
RELATED | 2026 GOVERNOR’S POLL RELEASED
***
Again, that isn’t Freedom Caucus “spin.” Those estimates came directly from the office of S.C. Revenue and Fiscal Affairs (SCRFA).
Who, exactly, is that supposed to benefit under such an arrangement?
Messages to the office of S.C. House speaker Murrell Smith did not immediately generate a response, however in the event we hear from House leadership about the current version of the bill – we will be sure to pass that along.
In the meantime, Freedom Caucus leaders are urging members of the House to remove their names as sponsors of the bill “until language is fixed… to ensure we are moving to a flat tax of 3.99% with no loopholes to hurt the middle class.”
“While I agree that a flat tax is a step in a good direction, we can’t raise taxes on the majority of the state,” Freedom Caucus chairman Jordan Pace wrote on X. “The way to cut taxes is to CUT SPENDING!”
Indeed. “Republicans” need to get serious about reducing the size and scope of government and sending real dollars back to the people. There is simply no time to waste on more of the same gimmickry.
***
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.
***
WANNA SOUND OFF?
Got something you’d like to say in response to one of our articles? Or an issue you’d like to address proactively? We have an open microphone policy! Submit your letter to the editor (or guest column) via email HERE. Got a tip for a story? CLICK HERE. Got a technical question or a glitch to report? CLICK HERE.
8 comments
A flat tax is never “a move in the right direction.”
What a pile of crap. Every time they have a chance to redeem themselves they just keep being corrupt
People, the metric to watch (as I have probably stated 5 times on this website) is not state income tax in isolation, but total taxation. That being said, this bill sounds like a weaksauce shell game.
Exactly! There was an article on FITS yesterday saying that most people moving to SC are from NC and GA. They’re not crossing the border to pay more in taxes. They tax on things in NC that we don’t even register in SC.
We are not stupid and , unlike some Democrats, we WILL hold our Republican AND Democrat leaders accountable for any harm they may cause their constituents. This article makes our Republican leadership sound like it is following a page from the Democrat playbook. We WILL be contacting our representatives..
Generally speaking, “we” have done a poor job of holding politicians accountable or even paying attention to what they’re doing. If they run as a Republican, are a member of a Protestant church, and parrot what they hear on Fox News, they get a pass. For SC to get better, we need better quality people serving. And that’s hard to do because decent people don’t want to go through the political process, and most can’t make ends meet on the paltry sum that an ethical legislator receives in compensation.
One of the problems we have in SC is that our legislators think they know everything about everything. The reality is that they’re a bunch of simpletons that don’t know what they don’t know. They oversimplify complex issues and get duped by lobbyists and special interests. How long have we heard that we are not “competitive” with NC and GA because of our tax rates (mainly from FITS)? There’s much more that goes into the overall tax structure than individual tax rates. For instance, de-coupling our tax code from using Federal taxable income as the starting point means that the SC tax regs will have to be re-written to determine how much income is taxable in SC. That gives this same bunch of simpletons and their puppet masters an opportunity to give even more carveouts for themselves at the expense of the rest of us.
Take note every single person giving the big smiles on that headline photo is a part of the problem. Following the orders of their handlers and the Dept of commerce, their master. And they are not being held accountable. Look on their social media pages and look how many people are praising these RINOs. Only person missing above is their propaganda minister. Wake up citizens. They are not serving or working for us.