An income tax reform legislation press conference was held at the State House today, promising lower income taxes for S.C. residents.

Speaker of the South Carolina House of Representatives Murrell Smith joined Governor Henry McMaster, Senate President Thomas Alexander, Senate Finance Chairman Harvey Peeler, House Ways and Means Chairman Bruce Bannister, Americans for Tax Reform President Grover Norquist, Members of the General Assembly, and guests to announce proposed income tax reform legislation for next year’s budget, aiming to improve tax conditions for residents and ensure that our income tax reform legislation meets the needs of South Carolinians.

Said House Speaker Murrell Smith, “Today is a day that South Carolina takes back its income tax policy from Washington, D.C. It’s no secret that we have talked about our income tax reform legislation and rate. We are the highest income tax rate in the Southeast. Today, we are lowering our rates to less than N.C. and Georgia as part of our income tax reform legislation.“

Chairman, House Ways and Means Committee, Bruce Bannister said, “Today I am pleased to introduce a new income tax reform legislation that will simplify our tax code. It will make our state more competitive. It will put more money in the pockets of hard working South Carolinians. As you know, South Carolina currently has the highest income tax in the Southeast, 6.2%, and this new income tax reform legislation aims to change that.“

Bannister added, “That’s a burden on families, on workers, and on businesses looking to grow and thrive here in the Palmetto State.”

Understanding the Impact of Income Tax Reform Legislation

“But with the new bill, we will collapse our two tiered tax system and replace it with a single flat tax rate of 3.99%. This is just the first step in lowering the tax burden on our citizens and fostering economic growth,” Bannister added.

Bannister went on to say, that over time as key economic conditions are met, the state would gradually reduce the income tax rate from 3.99% to 2.49%, ensuring that S.C’s tax rates were competitive and sustainable.

Bannister said it was not his intention to change the revenue source for the state, but to reduce it. He said the state was committed to lowering the tax burden on residents without shifting taxes to other areas, like property taxes or sales taxes.

He said the tax cuts will cost the state $200 million in less revenue.

Bannister said the bill maintains all current tax deductions and tax credits previously in place including tax credits for military families, senior citizens, and families with dependents.

“Every South Carolinian’s paycheck will get more revenue to the South Carolinian and less money to the government,” said Bannister. He called it a simpler tax system with a lower tax rate, and more money in your pocket.

Chairman, Senate Finance Committee, Harvey Peeler joked, “We will take up this bill when it reaches the senate and make it better.” He then added, “and by better, I mean lower.

The plan must pass both the S.C. House and S.C. Senate. It must then be signed by Governor Henry McMaster to become law.