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2026 will prove to be a consequential year for South Carolina. As we approach the beginning of our state’s legislative session and enter an election year – which includes the first open Governor’s race since 2010 – much is at stake. South Carolinians realize that we need material change in the structure and efficiency of government and wholesale reform in many areas. The reason for this awakening is multifaceted, but it boils down to competitiveness.
With the election of Mayor Zohran Mamdani in New York City and Governor Gavin Newsom in California floating a “Billionaire Tax”, that will open the door to further taxing the middle class as well, the exodus of human and monetary capital from just those two locations will be staggering. As with COVID, the southeast will absorb the lion’s share of newcomers fleeing these oppressive policies, and we need to be prepared.
Between 2020 and 2024 South Carolina saw its population rise by about 300,000 people and was the fastest growing state by percentage in 2023 per the U.S. Census Bureau. While that data might sound good on a campaign sticker, I see it more as Kevin Bacon’s character in Animal House screaming “all is well” as Bluto wrecks the parade. The reason being we are simply behind the power curve to accommodate this continued surge and our system of “that’s the way it’s always been done” simply isn’t cutting it anymore, if it ever did.
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When zooming out to look at the rest of the Southeast, we see how other states have made bold changes to bolster their attractiveness to newcomers and provide a benefit to their locals; North Carolina has moved to further reduce its income tax, Tennessee implemented universal school choice and got rid of its state income tax, Georgia is seeking to eliminate its income tax and Florida is perusing doing the same with property taxes. Both Florida and Georgia have recently enacted major tort reform as well.
Where is South Carolina positioned in relation to our peers? We have the highest income tax in the Southeast, the worst infrastructure, ranked near the bottom in education, we continue to increase our budget and spending with little signs of improvement and are one of the most litigious states in the entire union. Additionally, due to our State Constitution, which was ratified in 1895, we don’t have three coequal branches of government. Our executive branch is weak, the judicial branch is selected by the legislature, the legislature is overbalanced with power and other constitutional offices are disaggregated and operate in silos.
For South Carolina to be exceptionally competitive, the following 10 items should occur:
- Reduce the state income tax with a plan to eliminate it inside of 5 years and cap government spending to population plus inflation.
- Reform the JMSC by moving all appointments to the governor, forbid legislator membership, and mandate law enforcement representation.
- Grant the governor the power to appoint and/or create the following cabinet positions: Comptroller General, Treasurer, Secretaries of Education, Finance, Agriculture, Energy, Technology, Public Safety, and Transportation as they are constitutional or executive officers.
- Pass a universal school choice program.
- Pass meaningful tort reform focusing specifically on medical malpractice, trucking, hospitality, and construction defect sectors while ensuring that everyday citizens continue to have access to restorative justice.
- Relinquish state control of roads and bridges to able counties or municipalities for construction, maintenance, and repair.
- Require data centers to pay for their own power generation costs, including construction of requisite power facilities.
- Increase the homestead exemption and mandate a 5-year residency restriction before one can obtain it.
- Leverage AI and other technologies to increase both efficiency and transparency in government.
- Establish a Board of Regents to govern all public higher education institutions as has been done in 39 other states including NC and GA.
In my tenure as the CEO of the South Carolina Policy Council, I have met with many legislators, the governor and current gubernatorial candidates, and administrative heads who understand and generally support the above reforms. These are good people from all corners of the state and across party lines. In fact, some of the above issues are on the table for this session.
So why aren’t we jamming ahead arm in arm?
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For too long, there has been a sense of hostility and defensiveness in the air in Columbia. Sure, special interests play a key role in that, but moreover, in my opinion, we haven’t always seen our fellow South Carolinians as teammates. That’s just not the elected leaders; it’s all of us.
This all boils down to competitiveness. Not between geographic regions or various industry sectors in S.C. but with our neighboring states and even abroad. If we’re going to get where we need to go and leave something better for our children and grandchildren, the egos, special interests and past feuds need to go in the dumpster. We need to muster our historical sense of rugged individualism towards a common goal just as our forefathers did 250 years ago when they waged more battles than any other state to help secure our independence in American Revolution.
Will South Carolina in 2026 mirror 1776 in terms of meeting the moment? I for one, believe we can.
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ABOUT THE AUTHOR…
Michael Burris is the CEO of the South Carolina Policy Council and an eighth generation South Carolinian.
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