South Carolina Lawmakers Propose Flat 3.99% Income Tax Rate

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At a press conference on March 25, state legislative leadership including Speaker of the South Carolina House of Representatives Murrell Smith, Senate President Thomas Alexander, Senate Finance Chairman Harvey Peeler, House Ways and Means Chairman Bruce Bannister, and Americans for Tax Reform President Grover Norquist, joined Governor Henry McMaster to announce proposed state income tax reform legislation.

SCACPA members Doug Snyder, CPA, and Ken Newhouse, CPA, along with SCACPA CEO Chris Jenkins, were in attendance.

The proposed legislation would bring South Carolina’s income tax rate to 3.99% under a flat tax system. Rep. Bruce Bannister, chair of the House Ways and Means Committee, introduced the bill to simplify the South Carolina tax code.

Currently, South Carolina’s state income tax is 6.2 percent. The new bill will collapse the state’s two-tier tax system and replace it with a flat tax rate of 3.99 percent (lower than neighboring states, Georgia and North Carolina). The aim is to attract businesses and residents by creating a more favorable tax environment.

Governor McMaster said he expects the bill on his desk before the end of the legislative session.

This story is developing, and we will continue to update and report as we learn more.

Watch the Full Press Conference

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