MYRTLE BEACH, S.C. (WBTW) — A South Carolina lawmaker wants to cut the state’s income tax in half for individuals and completely eliminate income tax for businesses.
South Carolina has one of the highest income tax rates in the country, and neighboring states have been dramatically decreasing their rates for the last few years.
Sen. Josh Kimbrell, R-Spartanburg County, wants to cut South Carolina’s income tax from 7% to 3.5% and remove income tax for businesses.
Kimbrell said that if South Carolina does not cut down taxes, people, businesses, and economic development will start moving to neighboring states like North Carolina.
Tennessee has no income tax at all, the top state income tax in North Carolina is at 5.25%, and in Georgia, the top income tax rate is 5.75%.
Kimbrell said they will not need to raise the sales tax and that he believes the state would not lose any money under his proposal due to the high amount of tourism the state attracts each year.
“We’re going to close all the loopholes on sales tax and we’re not raising the rate,” Kimbrell said. “We don’t have to raise our sales tax we just have to close our exemptions.”
The average family in the state of South Carolina makes $50,000/year and if the state income tax was cut in half, individuals would save up to $1,700/ year on taxes.
“It makes the state an attractive place to not only open a business but to live, work, and raise a family,” Kimbrell said.
Kimbrell is confident that his bill will pass with minor changes because when he first introduced it, he had 12 sponsors.