COLUMBIA — A Republican-led push to massively reduce state revenue taxes handed the South Carolina Home unanimously after Democrats praised it as serving to “the working man.”
The proposal authorised 110-0 on Feb. 23 would erase $600 million in income this yr. As soon as totally phased in over 5 years, it’ll reduce greater than $1 billion from the state funds.
Somewhat than slicing solely for high earners, as initially proposed, the plan — which might be included within the Home funds for the fiscal yr beginning July 1 — makes a lot deeper cuts from the outset whereas broadening the tax breaks to decrease revenue ranges.
The adjustments got here after an replace in income predictions final week handed lawmakers a further $1.5 billion to spend, pushing the full windfall newly obtainable this yr to $7.6 billion.
“The savers by this plan are middle-income earners,” Home Majority Chief Gary Simrill mentioned in explaining the amended invoice.
“The {dollars} you see coming into South Carolina are being invested proper again into the taxpayers of South Carolina,” mentioned the Rock Hill Republican. “It’s the center earners who get the most important lower. I feel for us is a real win.”
A refrain of Democrats stood as much as agree.
“I feel that is the most effective factor since sliced bread for the working man in South Carolina,” mentioned Rep. David Weeks, D-Sumter.
“I thanks for a job effectively achieved,” chimed in Rep. Pat Henegan, D-Bennettsville, chairwoman of the S.C. Legislative Black Caucus.
Nobody spoke in opposition to the plan.
The Home’s budget-writing committee is anticipated to undertake its spending bundle for 2022-23 later Wednesday. The complete Home will take up the Methods and Means Committee’s plan the week of March 14.
Home GOP leaders wished to have a flooring vote on the revenue tax proposal earlier than Methods and Means included it in its funds bundle.
This can be a creating story. Test again for updates.
Observe Seanna Adcox on Twitter at @seannaadcox_pc.
