Tax & Budget

South Carolina’s tax system is unfair, unstable, and uncompetitive. With the highest individual income tax rates in the Southeast, complexity and special interest giveaways leave individuals and small businesses footing this hefty bill. As other states innovate to increase their competitiveness and move to simplify their systems, learn how South Carolina can avoid getting left behind.

The Latest

Blog
June 20, 2025

Protect Local Charities

Palmetto Promise Team

This op ed was originally published in FitsNews. At Palmetto Promise Institute, we believe the best solutions don’t come from Washington — they come from communities. That’s why we were alarmed to see the U.S. House propose a steep tax hike on private foundations, raising the current 1.39% excise tax on investment income to as

Blog
June 19, 2025

Rating South Carolina: Pensions, Elections, & Roads. Oh my!

Oran P. Smith, Ph.D

At Palmetto Promise Institute, we are big on ratings and rankings. If done properly, a grade or score in a policy area can help a state know where it stands on freedom issues and how efficiently and effectively that state spends taxpayer dollars. Comparisons to neighboring states can be particularly useful. Trusted national organizations produce

Blog
June 19, 2025

Raising the SALT Cap in the OBBB: A Blue State Bailout?

Annika Boeh

President Donald Trump’s “One, Big, Beautiful Bill” passed the U.S. House of Representatives on May 22, but its long-term implications are far from settled. The bill ties together a wide range of policy issues: reform of SNAP benefits, Medicaid, tax-free tips, tax-free overtime pay, and notably, a raise of the State And Local Tax (SALT)

Blog
June 2, 2025

Changes Needed to Non-Resident Income Tax Policy

Jennifer Buckley

When most South Carolinians think about state income taxes, they imagine filing a single return. Yet, for the estimated 200,000 residents who cross a state line to earn their paycheck, and the 121,000 non-residents who work in-person in South Carolina, the reality of tax season is a little more complicated. These citizens are often caught

Blog
May 6, 2025

KEY THINGS TO KNOW ABOUT THE SOUTH CAROLINA TAX CUT PLAN 

Oran P. Smith, Ph.D

H.4216 would set South Carolina’s individual income tax—currently at 6.2%—on a path to 0%. No state has eliminated its income tax in 45 years, but H.4216 would set South Carolina on the road to repeal. H.4216 would also shift South Carolina to a federal AGI-based income tax calculation.  Flattening tax rates is the clear trend

Blog
May 6, 2025

Economic Impact Analysis: House Republicans’ Income Tax Plan Will Boost SC Economy

Oran P. Smith, Ph.D

Palmetto Promise Institute, in collaboration with The Buckeye Institute, has conducted an economic impact study on the newly amended H.4216, a proposal by the state’s Republicans leaders to move South Carolina’s highest-in-the-southeast income tax to two tiered rate of 5.39% and 1.99%, based on Adjusted Gross Income (AGI). Our findings show how South Carolina’s economy

Blog
May 5, 2025

Seven FAQs About South Carolina Republicans’ Tax Cut Plan

Oran P. Smith, Ph.D

1. What is actually in H.4216, the Republican Tax Cut Plan? H.4216 is a conservative-sponsored plan to cut the top current South Carolina individual income tax rate from 6.2% to 5.39%, then on down to 1.99% if the economy stays healthy.   2. Who will benefit from the Tax Cut Plan? Everyone will benefit from the

Blog
April 10, 2025

RELEASE: Passage of Tax Bill to Grow SC GDP by a Quarter Billion Dollars in First Year Alone

FOR IMMEDIATE RELEASE COLUMBIA, SC — A new economic impact study by the Palmetto Promise Institute and the Buckeye Institute predicts that passage of the Republican income tax bill (H.4216) could expand South Carolina’s economy dramatically.   According to Zachary D. Cady, Associate Economist at the Buckeye Institute’s Economic Research Center, analysis of the bill found

Blog
April 9, 2025

New Economic Impact Analysis Finds Tax Cut Plan Juices SC Economy

Oran P. Smith, Ph.D

Palmetto Promise Institute, in collaboration with The Buckeye Institute, has conducted an economic impact study of H.4216, a proposal by the state’s Republicans leaders to move South Carolina’s highest-in-the-southeast income tax to a flat 3.99% rate, based on Adjusted Gross Income (AGI). Our findings, detailed below, show how South Carolina’s economy would benefit from the