Personal Taxes

McMaster is asking lawmakers to chop personal earnings taxes

South Carolina Gov. Henry McMaster is asking lawmakers to work with him to lower the state’s personal income tax rate from seven percent to six percent. It would happen over the next five years, starting with an immediate $177 million cut in year one. McMaster laid out his vision Wednesday night in Columbia during his annual State of the State address. “South Carolina’s booming economy with nearly $3 billion in revenue surplus along with the $2.4 billion in (American Rescue Plan) -Mittel gives us a unique opportunity,” he said. McMaster said cutting personal income taxes would help make South Carolina more competitive. “Despite our great successes, South Carolina’s marginal tax rate of 7 percent is the highest in the Southeast and the 12th highest in the nation,” he said. In Georgia, the state income tax rate is 5.75%. In Georgia the rate is 5.25% and in Tennessee there is no personal income tax. The Democratic response did not specifically address McMaster’s income tax proposal, but did mention taxes. “Let’s start working together to provide tax breaks to working families who actually need them, and let’s do it this legislature,” said Charleston Rep. Spencer Wetmore, who delivered the address. “I am pleased that the governor supports the income tax cut and recognizes the need to cut income taxes,” Kimbrell said. Spartanburg State Senator Josh Kimbrell introduced a bill that would halve the personal income tax to 3.5%. “I’m going to say that a 1 percent reduction isn’t enough,” Kimbrell said. Kimbrell’s proposal would also eliminate corporate income taxes. However, he said he was willing to work with McMaster. “The governor and I are not that far apart. I might want to be a little faster than him. I might want to go a little further than him, but I’ll walk down the street with him and lower taxes,” Kimbrell said.

South Carolina Gov. Henry McMaster is asking lawmakers to work with him to lower the state’s personal income tax rate from seven percent to six percent.

It would take place over the next five years, starting with an immediate $177 million cut in year one.

McMaster laid out his vision Wednesday night in Columbia during his annual State of the State address.

“South Carolina’s booming economy with nearly $3 billion in excess revenue combined with $2.4 billion in (American Rescue Plan) funding presents us with a unique opportunity,” he said.

McMaster said cutting personal income taxes would help make South Carolina more competitive.

“Despite our great successes, South Carolina’s marginal tax rate of 7 percent is the highest in the Southeast and the 12th highest in the nation,” he said.

In Georgia, the state income tax rate is 5.75%. In Georgia the rate is 5.25% and in Tennessee there is no personal income tax.

The Democratic response did not specifically address McMaster’s income tax proposal, but did mention taxes.

“Let’s start working together to provide tax breaks to working families who actually need them, and let’s do it this legislature,” said Charleston Rep. Spencer Wetmore, who delivered the address.

“I am pleased that the governor supports the income tax cut and recognizes the need to cut income taxes,” Kimbrell said.

Spartanburg State Senator Josh Kimbrell introduced a bill that would halve the personal income tax to 3.5%.

“I’m going to say that a 1 percent reduction isn’t enough,” Kimbrell said.

Kimbrell’s proposal would also eliminate corporate income taxes. However, he said he was willing to work with McMaster.

“The governor and I are not that far apart. I might want to be a little faster than him. I might want to go a little further than him, but I’ll walk down the street with him and lower taxes,” Kimbrell said.

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