01-04-2025
SC income tax bill is discussed for first time
Columbia S.C. (WSPA) – South Carolina state leaders introduced a bill last week which could affect the amount of income tax you pay.
The income tax in South Carolina currently ranges from 0 – 6.2%. The new bill would change that to a flat rate of 3.99% for everyone.
If passed, Democrats said that tax rate would be an increase for 60% of South Carolinians.
'I don't want to see working people winding up paying for tax relief. That will simply reduce it from our income tax credit,' said Rep. Gilda Cobb-Hunter (D – Orangeburg).
Currently the top 10% of earners pay the majority of the state income tax, but main sponsor Representative Bruce Bannister (R – Greenville) said it's important for everyone to pay their fair share.
'We have people earning $1 million in earned income, that are paying 0 income tax, and then we have people at the lowest level, $10,000, in income who are paying more than their fair share,' Bannister said.
Representative Brandon Newton (R – Kershaw) said it's important South Carolina is competitive in the southeast, and this bill would do exactly that.
'North Carolina did a lot of tax swaps. They were raising taxes in other areas to pay for a significant amount of the cuts you're making. This plan is not, this plan is an exact tax cut for the payers of South Carolina.'
Cobb-Hunter said she is worried because she says there is no definitive timeline.
'I'm not convinced that it is in the best interest of working people in this state, given the chaos at the federal level, given the uncertainty.'
Republican supporters said they hope when the income tax growth is 5% or greater they will phase down the percentage rate by $200 million.
Newton said the bill is a top priority this legislative season and he said it will be debated on the house floor next week.
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