Nancy Mace Details Income Tax Elimination Proposal

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by WILL FOLKS

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Talk is cheap in politics. It’s particularly cheap in the race for governor of South Carolina – a state where chief executives have precious little power over their own branch of government.

Thanks to the 1895 constitution, power in the Palmetto State is vested almost exclusively in the legislative branch – i.e. the S.C. General Assembly. After Reconstruction, ruling white Democrats (who govern in a manner eerily similar to today’s ruling white “Republicans”) feared the swelling black population would assume political control – so they re-wrote the state’s founding document to mitigate the risk of a black governor ever having any real power if elected.

To this day, South Carolina’s gubernatorial office remains impotent compared to other executives nationwide – with the legislature enjoying direct control over many functions of government which would (and should) be executive functions in a more logically established system.

Legislative leaders are constantly seeking to expand that authority, too, although there are a handful of fiscal conservatives in the S.C. General Assembly who have proposed measures to empower future governors with expanded authority (in the name of enhancing accountability).

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At any rate, the anemia of this office means promises made by the candidates seeking it are only as good as that candidate’s ability to get them through the legislative branch – a concept which apparently continues to elude some people.

Governors typically sell out to the status quo, content to lazily administer the few swaths of the sprawling Palmetto bureaucratic fiefdom entrusted to their care.

It doesn’t have to be like that, though. If governors are willing to articulate bold policies – and campaign on behalf of lawmakers and candidates willing to implement them – they have the potential to move the needle.

We’ve often opined that the race for governor in South Carolina this cycle needs a “change agent.” We’ve also argued first district congresswoman Nancy Mace has the potential ability to fit that bill.

For many months, though, Mace appeared more interested in being a “chaos agent” – raising questions about her fitness for higher office (or for that matter, any office). But as spring blooms across the verdant Palmetto plains, hills and mountains – marking the onset of the quadrennial partisan primary election for governor – Mace has steadied the ship (including an even-keeled performance in this week’s gubernatorial debate in Newberry, S.C.).

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Seeking to capitalize on her momentum, Mace rolled out her vision for the complete elimination of South Carolina’s onerous income tax – a levy which is the highest top marginal tax rate in the entire southeast.

Referring to the recent pittance of relief provided to an estimated 40% of taxpayers, Mace argued lawmakers did not “go far enough for working South Carolina families facing rising costs and a rapidly growing state.”

“A reduction is not elimination,” Mace said. “South Carolina can do better.”

Mace’s “Five Years to Zero” plan would freeze the Palmetto State’s general fund appropriations – i.e. the third of the state budget financed by tax collections – at levels established in the fiscal year 2023-2024 budget. Or specifically, at $11.636 billion.

The general fund in the proposed budget for fiscal year 2026-2027 is $13.936 billion – an increase of 19.7% in just three years. The total state budget for the coming fiscal year – including money from state fees and fines as well as federal funding – is $42.6 billion, which represents an 8.75% increase over the previous year alone.

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Governor McMaster just signed a bill reducing South Carolina's income tax. We applaud him for it.

But a reduction is not elimination.

We are the only candidate in this race with a detailed plan to take the state income tax all the way to zero. Five Years to Zero. Every dollar… pic.twitter.com/89uBhC3XAq

— Nancy Mace (@NancyMace) April 2, 2026

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Under Mace’s proposal, “every dollar above the spending cap” would be returned to taxpayers through “permanent income tax reductions until the rate reaches zero.”

Mace also vowed to “pause, reduce or eliminate earmarks over five years.” Earmarks are spending items specifically requested by individual lawmakers for local projects. These expenses – the vast majority of which are nonessential – are used by legislative leaders to purchase the loyalty of state lawmakers on critical budget votes.

It’s a favor factory, pure and simple – one that fuels the reckless, unnecessary and unaccountable growth of government.

“South Carolina is the fastest-growing state in the nation,” Mace said. “It is time to make it the most affordable. Every dollar South Carolinians earn should stay in their pockets – not in Columbia. Five Years to Zero is how we get there.”

As the upcoming gubernatorial primary draws closer, count on FITSNews to share additional details of the candidates’ plans – as well as our assessment of their ability to implement them.

Because as we have seen already in this election cycle, not all campaign promises are everything they’re cracked up to be…

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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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