tax cuts

The South Carolina House will begin debate on the state's $14 billion budget Monday, but one billion-dollar bit of business probably won't get settled until well into the spring. Lawmakers have an unprecedented amount of money to spend between the booming economy, federal stimulus money and cash lawmakers saved over the past few years. There is $1 billion set aside to improve roads, money for salary increases for state employees, law enforcement and teachers. But the difference in the income tax cut plans passed by the House and Senate likely won't be resolved for more than a month. The House sets aside $600 million, while the Senate wants to spend $2 billion.

The South Carolina Senate has unanimously passed a $2 billion income tax cut and rebate bill, setting up what will likely be intense negotiations with the House over the $1 billion tax cut it passed last month. The proposal would send a rebate of at least $100 to everyone who files an income tax return in South Carolina, Taxpayers who do owe state income tax would get that amount back up to $700. It cuts the state's top income tax rate from 7% to 5.7%, The House's tax cut bill trims the top rate from 7% to 6.5% now, eventually falling to 6%. All other brackets would collapse to 3% under the House plan.

A bill that would give everyone who files an income tax return in South Carolina a rebate of at least $100 is speeding its way through the state Senate. The Senate Finance Committee on Tuesday unanimously passed the $2 billion bill, which also includes cutting the top income tax rate in the state from 7% to 5.7%. The proposal would give people who owe no state income tax $100 and filers would get the tax they pay back up to $700. The proposal now heads to the Senate floor. The sometimes long-winded Senate Finance Committee debated the bill for less than 20 minutes.

Everybody who files an income tax return in South Carolina would get a rebate check of at least $100 in a bill being considered by the state Senate. That includes the more than 1 million people who pay no state income tax. The rebates make up about half of a $2 billion package. A subcommittee sent the bill to the full Senate Finance Committee on Thursday. The measure also would cut the top income tax rate from 7% to 5.7%. The Senate proposal doubles the money put into tax cuts by the House, which unanimously passed its own tax package without a rebate last week.

The Republican-dominated South Carolina House has unanimously passed a $600 million income tax cut in less than 15 minutes of debate. Much of that short time Wednesday was spent with Democrats praising the proposal. Democratic Rep. David Weeks of Sumter called the tax cut the best thing since sliced bread for the working man in South Carolina. The House plan cuts the states top income tax rate from 7% to 6.5% next year and continues to reduce it to 6% over the next five years if the economy continues to grow. The proposal heads to the Senate, where leaders propose an even bigger cut from 7% to 5.7% and also $1 billion in rebates.

Another shot of good economic news this week immediately saw the state’s Republican leadership vowing to cut state income taxes something many have advocated for years. Bills to lower personal income tax rates are advancing in both the State House and Senate.

The financial leader in the South Carolina Senate has proposed nearly $2 billion in income tax cuts and rebates. The plan by Senate Finance Committee Chairman Harvey Peeler adds an even larger number to the debate on cutting taxes heating up in the General Assembly. Peeler's plan would drop the state's top tax rate of 7% down to 5.7% when people file their returns next year. That would cost nearly $900 million. Peeler also wants to give $1 billion of one-time rebates to taxpayers, but the Gaffney Republican said he is still working on those details. Gov Henry McMaster and Republican House leaders proposed cutting the top state income tax rate from 7% to 6.5% on Tuesday.