Latest news with #BrandonNewton
Yahoo
08-05-2025
- Business
- Yahoo
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. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to WSPA 7NEWS.
Yahoo
01-04-2025
- Business
- Yahoo
South Carolina's flat tax proposal would initially raise rates for most
COLUMBIA, S.C. (AP) — In the state battles to adopt the lowest and most attractive tax policies, South Carolina Republicans are making an interesting gambit: they want to raise income taxes for about 60% of filers in 2026. Supporters say it's short term pain for the long term gain of establishing a flat income tax rate. To get there, some of the state's most heavily taxed people would get a significant cut as the state's top 6.2% rate drops next year to 3.99%. The eventual goal is to slash that flat income tax rate to 2.49%, a level authors of the plan say would mean three out of four taxpayers would pay less than they do now. It's a rate lower than even taxpayers on the bottom rung currently pay. However, reaching that objective would take several years and each downward tick in the tax rate would depend on the state seeing significant economic growth. Legislation proposing the changes advanced Tuesday to the House Ways and Means Committee. The goal is to get the bill through the House next week and on to the Senate. Republican Rep. Brandon Newton called it a 'conservative revolution" when it comes to income taxes. 'It's all about fairness,' he said. 'We should have a simple tax system that is flat, fair and that everyone takes part in. We should not have a progressive income tax system where a group of the population is paying the entire tax while another is not.' Democrats were still processing the proposal Tuesday, but were alarmed that initially taxes would be raised on 60% of people in the state — many of them middle class — especially without a firm time set to bring them back down. 'I am real nervous about what we are going to find out later went into paying for this tax cut," said Democratic Rep. Gilda Cobb-Hunter. A number of states, especially in the South, are looking to cut taxes, with each striving for the lowest rates. Georgia and Kentucky are looking at smaller income tax reductions paid for with extra revenue from their booming economies. Mississippi is eliminating its state income tax over more than a decade and increasing gas taxes. Louisiana's income tax cut is based on a sales tax increase. However, North Carolina's Democratic governor is suggesting pausing his state's planned income tax cuts because of the economic uncertainty surrounding the impact of President Donald Trump's policies. Republicans in South Carolina have been nervous about how the state's tax rate looks compared with its neighbors for years. The state computes taxes based on federal adjustable tax income, which makes the rate look higher when compared with most states that use adjusted gross income. Newton said South Carolina's plan was the best of all worlds, emphasizing that when economic growth triggers cutting the income tax rate to 2.49%, nearly four out of five taxpayers would pay less. 'This is a simple cut for the hard working taxpayers of South Carolina, not swapping it for another tax,' Newton said. Cobb-Hunter said the rush to cut taxes everywhere is dangerous. 'I'm troubled by this notion we've got to out tax relief North Carolina and Georgia and all these other Southern states. I don't think we should willy-nilly be talking about providing tax relief giving the uncertainty of the economy," she said. South Carolina's Republican governor and House and Senate leadership held a press conference on March 25 announcing the flat income tax proposal. But details were sparse until late Monday, when the state Revenue and Fiscal Affairs Office released its analysis of the plan. It found that the majority of taxpayers in seven different income bands ranging from $10,000 to $150,000 would pay more, with the average increase somewhere between about $300 and $800. Most of the impact comes because the state currently has a top income tax rate of 6.2% and a bottom rate of 3%, although about 1 million taxpayers currently pay nothing. Backers of the Republican tax plan want those people to pay something. Republican Gov. Henry McMaster told reporters Tuesday that he supports a "broad, flat, simple-to-understand low tax. Everybody ought to pay something — a little something.'
Associated Press
01-04-2025
- Business
- Associated Press
South Carolina's flat tax proposal would initially raise rates for most
COLUMBIA, S.C. (AP) — In the state battles to adopt the lowest and most attractive tax policies, South Carolina Republicans are making an interesting gambit: they want to raise income taxes for about 60% of filers in 2026. Supporters say it's short term pain for the long term gain of establishing a flat income tax rate. To get there, some of the state's most heavily taxed people would get a significant cut as the state's top 6.2% rate drops next year to 3.99%. The eventual goal is to slash that flat income tax rate to 2.49%, a level authors of the plan say would mean three out of four taxpayers would pay less than they do now. It's a rate lower than even taxpayers on the bottom rung currently pay. However, reaching that objective would take several years and each downward tick in the tax rate would depend on the state seeing significant economic growth. Legislation proposing the changes advanced Tuesday to the House Ways and Means Committee. The goal is to get the bill through the House next week and on to the Senate. Republican Rep. Brandon Newton called it a 'conservative revolution' when it comes to income taxes. 'It's all about fairness,' he said. 'We should have a simple tax system that is flat, fair and that everyone takes part in. We should not have a progressive income tax system where a group of the population is paying the entire tax while another is not.' Democrats were still processing the proposal Tuesday, but were alarmed that initially taxes would be raised on 60% of people in the state — many of them middle class — especially without a firm time set to bring them back down. 'I am real nervous about what we are going to find out later went into paying for this tax cut,' said Democratic Rep. Gilda Cobb-Hunter. number of states, especially in the South, are looking to cut taxes, with each striving for the lowest rates. Georgia and Kentucky are looking at smaller income tax reductions paid for with extra revenue from their booming economies. Mississippi is eliminating its state income tax over more than a decade and increasing gas taxes. Louisiana's income tax cut is based on a sales tax increase. However, North Carolina's Democratic governor is suggesting pausing his state's planned income tax cuts because of the economic uncertainty surrounding the impact of President Donald Trump's policies. Republicans in South Carolina have been nervous about how the state's tax rate looks compared with its neighbors for years. The state computes taxes based on federal adjustable tax income, which makes the rate look higher when compared with most states that use adjusted gross income. Newton said South Carolina's plan was the best of all worlds, emphasizing that when economic growth triggers cutting the income tax rate to 2.49%, nearly four out of five taxpayers would pay less. 'This is a simple cut for the hard working taxpayers of South Carolina, not swapping it for another tax,' Newton said. Cobb-Hunter said the rush to cut taxes everywhere is dangerous. 'I'm troubled by this notion we've got to out tax relief North Carolina and Georgia and all these other Southern states. I don't think we should willy-nilly be talking about providing tax relief giving the uncertainty of the economy,' she said. South Carolina's Republican governor and House and Senate leadership held a press conference on March 25 announcing the flat income tax proposal. But details were sparse until late Monday, when the state Revenue and Fiscal Affairs Office released its analysis of the plan. It found that the majority of taxpayers in seven different income bands ranging from $10,000 to $150,000 would pay more, with the average increase somewhere between about $300 and $800. Most of the impact comes because the state currently has a top income tax rate of 6.2% and a bottom rate of 3%, although about 1 million taxpayers currently pay nothing. Backers of the Republican tax plan want those people to pay something. Republican Gov. Henry McMaster told reporters Tuesday that he supports a 'broad, flat, simple-to-understand low tax. Everybody ought to pay something — a little something.'
Yahoo
20-02-2025
- Business
- Yahoo
SC House bill wants State Auditor to be chosen by Gov.
COLUMBIA, S.C. (WSPA) – In South Carolina, the State Auditor is chosen by the State's Fiscal Accounting Authority (SFAA), but some lawmakers are pushing for the governor to decide. 'This should be given to South Carolinians when this change is made, a lot more confidence that the person who supposed to be looking out for them and their interest over top of these two offices is actually independent and not working for them,' said Representative Brandon Newton (R – District 45). The call for change comes after a report released in January from an independent financial accounting firm claimed the former Comptroller General, State Auditor, and current Treasurer knew about accounting errors, which led to the discovering of the 'mystery' $1.8 billion last year. It was later found that most of that money did not exist. In the report, the firm recommended the state auditor be chosen by the Newton, the bill's main sponsor, said that since the Comptroller General and Treasurer are on the committee that picks the state auditor, it is a conflict of interest. 'Whoa, that is not right, that you're answering a group of people that you're auditing that they need to be independent, and you'd be separate, and especially since the treasurer and comptroller are currently elected, they don't have bosses,' Newton said. 'Their bosses are the voters.' Representative Guilda Cobb-Hunter (D – District 95) said she is proposing an amendment to the bill that would allow the Governor to appoint both the Comptroller General and Treasurer. The amendment would require a change to the state's constitution. 'Voters in this state would support a constitutional amendment that says we're going to vote into the 21st century and we're going to allow the governor to appoint the chief executive officer to appoint the treasurer and comptroller general,' Rep. Cobb-Hunter said. Rep. Newton said he doesn't think the amendment is a good idea. 'I don't think we can put constitutional amendments onto bills that are changing statue,' he said. 'They usually have to run separately.' Last year, the same bill was unanimously passed in the house but never brought up in the Senate. Sen. Larry Grooms said the proposed legislation should be a top priority. 'It seems like there's a greater commitment from all parties involved to ensure that our financial house is strong and in order and built as it should be,' said Sen. Grooms. Rep. Newton said Comptroller General Brian Gaines and State Treasurer Curtis Loftis support this bill. Gaines and Loftis are not alone. South Carolina Governor Henry McMaster said he also supports this bill. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
