Speaker Smith Joins Governor, General Assembly Leadership to Announce Income Tax Reform Plan

Historic Tax Cut Will Lower Income Tax Rate to 3.9%, Lower Than Neighboring States

(COLUMBIA, S.C.) – House Speaker Murrell Smith joined Governor Henry McMaster, Senate President Thomas Alexander, Senate Finance Chairman Harvey Peeler, House Ways and Means Chairman Bruce Bannister, Americans for Tax Reform President Grover Norquist, Members of the General Assembly and guests this morning to announce a new legislative proposal that will bring historic income tax reform to South Carolina. The legislation, sponsored by Chairman Bannister, was immediately introduced on the House floor after the press conference.

The proposal will replace the current progressive income tax system with a single simple, flat rate of 3.99%. This is a significant drop from the current top rate of 6.2% and will immediately make South Carolina more competitive than North Carolina (4.25%) and Georgia (5.39%). The full press conference can be viewed here. 

“Today marks a pivotal moment for South Carolina,” said Speaker of the House Murrell Smith. “This tax reform proposal takes a bold step toward lowering income tax rates, simplifying the system, and regaining control of our tax code. By making our state more competitive, we’re sending a clear message: South Carolina is open for business and opportunity. I want to thank Governor McMaster, Senate President Alexander, and our legislative leaders for their partnership on this transformational plan.”

“The income tax has been too much, and it is holding us back. It’s time to get to work, move forward, and take the tax down,” said Governor Henry McMaster. “I look forward to having a tax reform package with lower taxes on my desk before this session ends so we can take another great step in the history of our state.”

“Today marks another great day for South Carolina as we unveil a bold proposal to lower our state’s income tax from 6.2% to 3.99%,” said Senate President Thomas Alexander. “This significant step forward will help keep South Carolina ahead of our neighbors in a fast-changing and competitive economy. Just as important is the teamwork that made this long-standing goal a reality. Thanks to the leadership of the Governor, as well as members of the Senate and House, we’re ensuring that South Carolina remains the best place in America to live, work, raise a family, and build a future.”

“In my first year as Finance Chairman, we passed the largest tax cut in state history by returning over $1 billion dollars to taxpayers. Today we continue that important work as we modernize our state’s income tax structure to create a broad-based, simple, and fair income tax,” said Senate Finance Chairman Harvey Peeler. “This is just a start, we must continue to address other tax issues including lowering sales and property taxes for our citizens.”

“This plan gives our taxpayers a lower tax rate, a simpler flat tax system, and allows them to keep more of their hard-earned money in their pockets,” said House Ways and Means Chairman Bruce Bannister. “It’s a win for families, workers, and businesses across our great state. I’m proud to cosponsor this bill with my colleagues in the House and am thrilled to be working together with Senate leadership and the governor as we embark on this monumental tax reform.”

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