Gov. Henry McMaster, S.C. House leaders propose income tax cut
COLUMBIA, S.C. (WIS) - Governor Henry McMaster was joined by S.C. House leadership and members of the S.C. House Republican Caucus Tuesday to announce an income tax cut proposal.
The proposal will accelerate the governor’s previous proposal two years ahead of schedule, according to the South Carolina Governor’s Office.
The new proposed income tax cut will immediately lower the tax rate for the 4%, 5%, and 6% brackets to 3% and lower the current 7% bracket to 6.5%.
“This is a pay rise for everyone who is working for a living,” said Governor Henry McMaster. “This tax cut will start an avalanche of change and prosperity, unlike anything we have seen, and add one more reason for South Carolina to have great success in the future.”
McMaster’s proposal follows the Board of Economic Advisors’ new economic forecasts for this year’s state budget, which includes an additional $621.5 million in recurring funds, along with $921.0 million in nonrecurring funds.
With these revised estimates, the governor says the new total for recurring funds is $1.519 billion, and then nonrecurring funds is $2.9 billion.
S.C. House Speaker Jay Lucas says the state is in a unique situation this year where there is an opportunity to provide tax relief to every South Carolinian.
“It is a basic Republican principle that we keep taxes low and I believe when there is a surplus of money flowing into our coffers it needs to be returned to the taxpayer,” Lucas said.
According to S.C. House Ways and Means Chairman, Murrell Smith, South Carolina has the 10th lowest effective tax rate in the nation, and this will take it one step further.
“I look forward to working with the Governor, the Lieutenant Governor, the Republican Caucus, and members of the House to enact this historic event,” Smith said.
|Proposed Tax Bracket|
|0.00%||$0 to $3,200|
|3.00%||$3,200 to $16,040|
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