SC House passes new bill that will lower income tax

COLUMBIA, S.C. (WSPA) – South Carolina has the largest income tax rate in the southeast, with a top income tax rate of 6.2%. However, a new income tax reform bill could change all of it.

“End the income tax in South Carolina by putting it into statutory law and requiring the general assemblies in the future to do so, while also lowering our top marginal rate,” said Representative Brandon Newton (R – Lancaster).

Originally, the House announced the Income Tax Bill that would make every South Carolinian pay a flat rate of 3.99%. Under the latest version of this bill, if you make $30,000 or more, you would pay 5.39%, but if you make less than $30,000, you would pay 1.99%. However, it would decrease over time, eventually leading to no income tax in the palmetto state.

“We will then have a flat tax that triggers, then continue down until the rate hits zero; it’s a true historic day for reform in South Carolina,” said Representative Newton.

Newton added, the new bill would force every South Carolinian to pay at least some income tax, which means there will be a tax increase for around 25% of residents.

Representative Justin Bamberg (D – Bamberg) proposed an amendment, which he said would immediately make the income tax zero, but it was voted down. Representative Newton said you can’t just bring it to zero.

“That would be a 40% deduction in the state budget in one year. I think the way that it was explained by, Frank Rainwater, in one meeting was everyone could take a prisoner home at night because we couldn’t have them in the Department of Corrections. ”

Representative Jordan Pace (R – Berkely), who is the head of the extremely conservative Freedom Caucus, agrees with Bamberg’s amendment and said the House should have taken more time to look at the bill and see if they could cut waste in the budget to make up for it.

“Listen, I’m all about cutting taxes. I’m all about going to zero. My fear is we’ve rushed this entire thing in the last few weeks.”

The Senate said they will not take up the bill this year, but will instead wait until next January.