|
Getting your Trinity Audio player ready...
|
South Carolina senators advanced a modest tax cut as part of their ongoing deliberations over state spending – although a key leader of the chamber indicated a larger tax cut could be in the works.
The current version of the S.C. Senate budget – parts of which were approved by the chamber’s finance committee on Wednesday (April 9, 2025) – mirrored an anemic proposal advanced three months ago by status quo governor Henry McMaster. It would cut the Palmetto State’s top marginal income rate from 6.2% to 6% – providing an estimated $290 million in relief out of a colossal $41.7 billion budget advanced by the S.C. House of Representatives.
While the House has proposed cutting the top marginal rate down to 3.99%, adjustments to deductions and increases in other brackets resulted in its total first-year relief amounting to just $216 million. The House plan also imposed a whopping $1 billion tax hike on middle income earners.
***
During this week’s finance committee meeting, S.C. senator Wes Climer referenced the House proposal – charitably noting ongoing issues with its “implementation.” Climer told S.C. Senate finance committee chairman Harvey Peeler he was under the impression senators were going to do more to cut taxes.
Specifically, Climer asked Peeler whether the $290 million in tax relief contained in the current plan “was going to be enhanced.”
Peeler didn’t tip his hand, but told Climer no one was going to “out-cut” him on taxes.
Hopefully, Peeler will stay true to his word…
Both “Republican” tax plans introduced this year – the governor’s limp-wristed cut and the House’s ill-conceived shift – fall well short of the comprehensive, broad-based relief required to stimulate our anemic employment economy, raise our lagging incomes or make the Palmetto State more competitive vis-à-vis its neighbors.
Senators can – and must – do better.
***
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.
