MYRTLE BEACH, SC (WBTW) – A South Carolina lawmaker wants to cut state income tax for individuals in half and eliminate corporate income tax altogether.
South Carolina has one of the highest income tax rates in the country, and neighboring states have significantly reduced their rates in recent years.
Senator Josh Kimbrell of R-Spartanburg County wants to reduce South Carolina income tax from 7% to 3.5% and eliminate corporate income tax.
Kimbrell said if South Carolina didn’t cut taxes, people, businesses and economic development would start moving to neighboring states like North Carolina.
Tennessee has no income tax, the highest tax rate in North Carolina is 5.25% and in Georgia the highest tax rate is 5.75%.
Kimbrell said they would not need to increase the sales tax and that he believed the state would not lose money on its proposal due to the large amount of tourism that the State attracts each year.
“We’re going to close all the sales tax loopholes and we’re not increasing the rate,” Kimbrell said. “We don’t have to increase our sales tax, we just need to close our exemptions. “
The average South Carolina state family earns $ 50,000 / year and if the state’s income tax were halved, individuals would save up to $ 1,700 / year in taxes.
“It makes the state an attractive place not only to open a business, but also to live, work and raise a family,” Kimbrell said.
Kimbrell is confident his bill will pass with minor changes because when he first introduced it he had 12 sponsors.