McMaster, SC House GOP leaders roll out $1B income tax cut proposal.

South Carolina Gov. Henry McMaster and lawmakers are pushing for massive tax cuts as they put together their budget for the upcoming fiscal year

Per The State:

Now that South Carolina lawmakers have even more money to allocate than originally expected as they put together their budget for the upcoming fiscal year, House Republican leadership and the governor want to push a larger tax cut than originally planned.

Gov. Henry McMaster, along with House Speaker Jay Lucas, R-Darlington, Ways and Means Chairman Murrell Smith, R-Sumter, and House Majority Leader Gary Simrill, R-York, are now calling for a tax cut that includes going to two main tax brackets, 3% and 6.5%, down from six tax brackets.

Over five subsequent years, the maximum rate would be reduced by a tenth of a percentage point a year until the maximum rate reaches 6%. The tax cut for each year would only take place if general fund revenue grows by at least 5%.

The current maximum income tax rate is 7%. It’s a plan that in five years could result in $1 billion being kept out of the state’s coffers annually, according to estimates from the Revenue and Fiscal Affairs Office.

“It is a basic Republicans principle that we keep taxes low, and I believe that when there’s a surplus of money flowing in our coffers that needs to be returned to the people,” Lucas said.

The proposal follows new estimates from the Board of Economic Advisors that say lawmakers have nearly $4.6 billion in additional money to allocate this year. The previous estimate was $3 billion in additional money.

McMaster’s latest push for the tax cut comes as he and the entire House are up for reelection.

“This is going to happen, and it will start an avalanche of change and prosperity unlike anything we’ve seen,” McMaster said in his office, surrounded by Republican House members. “The normal trend is there’s going to be an increase. We are confident we’re on the way up,” McMaster said.

“The federal money did help, but the conservative policies that we had in this state are what have allowed this this to occur.”

The South Carolina Chamber of Commerce on Tuesday lauded the tax cut proposal.

“Many states around the country have already seized the opportunity from robust revenues to reduce their tax burdens, so it is critically important that South Carolina take similar action this year to remain competitive,” Chamber of Commerce President and CEO Bob Morgan said in a statement.

Most recently, about 1.1 million tax returns paid the the 7% maximum tax rate, and more than 292,000 tax returns paid a tax rate between 4% and 6%.

1 year, 5 months ago

Governors in Iowa, North Dakota and Alabama join GOP colleagues in banning TikTok for state employees

The Republican governors of three more states have joined the growing number of GOP governors who are banning TikTok among state government employees amid security concerns about the Chinese-owned social media platform

1 year, 5 months ago

Arizona Governor Creates Shipping Container Border Wall

Arizona Governor Doug Ducey has had hundreds of double-stacked shipping containers topped with razor wire placed on the state’s border with Mexico

1 year, 5 months ago

Stacey Abrams’s Georgia Nonprofit Could Face Criminal Investigations for Unlicensed Fundraising

New Georgia Project's charity license has lapsed in at least nine states

1 year, 5 months ago

Biden says ‘more important things’ than border visit, despite 59 trips to Delaware, 8 stops for ice cream

Biden has yet to visit southern border despite historic crisis under his watch

1 year, 5 months ago

Governor Kristi Noem delivers annual Budget Address, says the state can afford grocery tax cut

In about thirty minutes of remarks, Governor Kristi Noem laid out her administration would like to see nearly $2.2 billion spent over the course of the next fiscal year and a half.

1 year, 5 months ago

‘A Clear And Present Danger To Its Users:’ South Carolina Gov. Bans State Employees From Using TikTok Amid National Security Concerns

South Carolina became the second state in the union Monday to permanently ban state employees’ electronic devices from using TikTok amid federal officials sounding the alarm that the Chinese-based social media app threatens national security