NEW REPORT: Achieving Prosperity, Stability, & Fairness: The Surprising Consensus on South Carolina Tax Reform
There is surprising agreement among conservative policy organizations on the most important changes needed to modernize South Carolina’s tax system and strengthen the state’s competitiveness. This is the conclusion of a new report from Palmetto Promise Institute.
What is the current state of tax policy in South Carolina?
While tax reform has moved forward in South Carolina in recent years, including a cut to the state income tax, a more comprehensive look reveals that the state tax code still poses challenges to economic growth. Some key areas of concern include failure to pass “full expensing” for business investments, competition from other Southeastern states in reducing the individual income tax, high business property taxes, and the hidden tort tax burden. Making progress on any of these critical issues would have an immediate effect on the prosperity of the Palmetto State.
Palmetto Promise Institute has been covering tax policy since 2015, and has always held the reduction of our tax burden as one of our key policy pillars in our Palmetto Freedom Agenda. Given the recent developments at the state level, and effects of the federal One Big Beautiful Bill Act (OBBBA), in this study, Palmetto Promise is updating our last major report on tax policy from 2025.
