The rate lowering and eliminating tax reform sweeping states across the nation has not gone unnoticed by South Carolina Gov. Nikki Haley, who said the following in her “State of the State” address last week:
“Other states have seen the successes we've had in South Carolina and are nipping at our heels. Look around the nation and see all the governors, the legislators, the states that are proposing slashing or even eliminating their income taxes. We have to keep up. “
Haley then went on to unveil her plan for keeping the Palmetto State’s tax climate competitive:
“This year, I propose that we eliminate the six percent tax bracket.
This reform cuts taxes for the overwhelming majority of people who pay income tax, and not a single South Carolinian will pay more.”
South Carolina’s 7% rate is currently the 13th highest top rate in the country, a distinction lawmakers in Columbia would do well to rid themselves of. More importantly, Gov. Haley’s proposal will provide much needed tax relief to individuals, families, and the more than 300,000 South Carolina small businesses that file under the individual income tax system. The Governor is correct that lawmakers must act this session to keep South Carolina competitive with her neighbors in the Southern region. In Louisiana, Gov. Jindal has already outlined a bold proposal to eliminate the state’s personal and corporate income taxes. Also, in North Carolina, Gov. Pat McCrory has indicated that he will be pursuing some form of income tax reduction, likely on both the personal and corporate side.
ATR supports Gov. Haley’s proposal as a way to keep the state economically competitive and provide relief to the individuals, families, and employers across South Carolina who need relief now more than ever in light of the job-killing, budget-busting Obamacare tax hikes that took effect just four weeks ago.