South Carolina’s Economy is Struggling for Most of its Citizens

Yes, the state should reduce / eliminate income taxes, but as D.S.S. said above, just under half of SC residents pay zero income tax, and thus also, likely don’t pay any federal income tax either. But those are the people suffering most [but don’t get me wrong – the middle and upper middle class is getting super squeezed too, but they are just pulling money out of retirement funds (thus delaying retirement) and making sure their bills are getting paid.] State government budgeting has very little to do with most of this suffering, for those suffering most. What is hurting them is a 32% cumulative rate of inflation over the last 5 years while their earnings have only grown by about 18%, thus causing them to fall a little more behind each year, and now it’s reaching the point of extremis. THAT was caused by out-of-control federal deficit spending, starting under TRUMP, which only further increased under Biden. Even if State gov’t returned a billion dollars to the taxpayers (note that I said taxpayers, not simply all residents) this year, it would not be in any way a long- term game changer. Meanwhile, while people are suffering here, we are burning more money to the tune of about a billon A DAY dealing with Trump’s self- inflicted tar baby of a debacle in Iran, which has actually hurt us financially at home all the more because of the shocks to the oil markets.