SC House income tax cut likely coming up for quick vote

COLUMBIA, S.C. (AP) — A proposal by Republican leaders in the South Carolina House to cut income taxes starting next year is on its way to the House floor.

The House Ways and Means Committee voted unanimously Tuesday to approve the bill that would cut the state’s top 7% income tax rate to 6.5% next year and push all other taxpayers into a 3% bracket.

The House will debate and likely vote on the bill Wednesday, House Majority Leader Gary Simrill said.

The cuts would cost $600 million in the first year and eventually take about $1 billion in revenue out of the state’s accounts.

Gov. Henry McMaster appeared with House leaders a week ago when they proposed the idea.

Senate Finance Committee Chairman Harvey Peeler introduced his chamber’s income tax cut plan last Thursday, proposing cutting the 7% rate to 5.7% and providing $1 billion in tax rebates with the details to be ironed out. The tax cut and rebate combined would cost around $2 billion.

The tax cut proposals are happening in a year where unprecedented growth, helped along some by federal stimulus money, has left lawmakers with $11.5 billion in yearly taxes and fees to spend — about $1 billion more than before the COVID-19 pandemic started.