House Speaker Murrell Smith joined Gov. Henry McMaster and General Assembly leaders to announce legislation replacing the state’s progressive income tax with a flat 3.99% rate.
Based on a release from S.C. Speaker of the House.
COLUMBIA, S.C. — House Speaker Murrell Smith joined Gov. 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 a legislative proposal to overhaul South Carolina’s income tax system, according to the Office of the Speaker of the House.
The legislation, sponsored by Bannister, was introduced on the House floor immediately after the press conference, according to the Speaker’s office.
The proposal would replace the state’s current progressive income tax system with a flat rate of 3.99%, down from the current top rate of 6.2%, according to the Speaker’s office. The change would make South Carolina’s rate lower than North Carolina’s 4.25% and Georgia’s 5.39%, according to the release.
“Today marks a pivotal moment for South Carolina,” Smith said. “This tax reform proposal takes a bold step toward lowering income tax rates, simplifying the system, and regaining control of our tax code.”
“The income tax has been too much, and it is holding us back,” McMaster said. “I look forward to having a tax reform package with lower taxes on my desk before this session ends.”
Alexander said the proposal would help South Carolina stay ahead of neighboring states. Peeler said the plan builds on last year’s tax cut, which he said returned more than $1 billion to taxpayers, and said sales and property taxes should also be addressed. Bannister said the plan offers a lower rate and a simpler system for families, workers and businesses.