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
May 24, 2024

Graphic: Just how high is that SC Individual Income Tax Rate?

Palmetto Promise Team

Palmetto Promise Institute remains firm in our belief that when the Conference Committee working on the 2024-25 state budget faces the choice between cutting the state individual income tax rate and rebating a portion of the property tax, it should pick a permanent reduction in the individual income tax. This is looking more doable with

Blog
May 14, 2024

Permanent Tax Reduction Beats One-Time Rebate Checks

Wendy Damron

As you read these words, a Conference Committee of the South Carolina Senate and House has been tasked with hammering out a state budget for the year that begins on July 1, 2024. There are instances where the House and Senate versions differ, and there are 353 pages of “provisos,” the instructions that the legislature

Blog
April 30, 2024

What Tax to Cut? Property or Income?

Oran P. Smith, Ph.D

At Palmetto Promise, we are always reluctant to question any move by the South Carolina General Assembly to cut taxes or flatten tax rates. So, we greet with joy the fact that in the wake of an estimated $500-$600 million state revenue surplus that has built up since 2020, the Senate and the House are

Blog
September 19, 2023

Let’s Jumpstart Comprehensive Tax Reform

Palmetto Promise Team

Since he was elected to the South Carolina Senate in 2012, Senator Sean Bennett has been a strong, steady voice for comprehensive tax reform. Bennett is known for taking to the well of the Senate and laying out his very specific concerns about how our current tax code is unfair, unstable and uncompetitive. Two of

Blog
March 2, 2023

Introducing Fiscal Facts 2023

Wendy Damron

Earlier this year, Palmetto Promise Institute published our Palmetto Freedom Agenda, 23 policies to make South Carolina an even better place to live, work, and raise a family. Today I am pleased to deliver to you a “beta” edition of Fiscal Facts 2023: Data to Support the Palmetto Promise Freedom Agenda. This publication is chock-full

Blog
October 27, 2022

Feed the Pig

Oran P. Smith, Ph.D

In our Palmetto Playbook, we decided to take on fiscal policy more aggressively. After all, what policy area is more crucial to the future of South Carolina than how the state handles its money?  Since then, we have been writing about fiscal responsibility regularly.  Thanks for your positive response! Our Playbook look back at state

Blog
October 13, 2022

The Rest of the Tax Cut Story

Oran P. Smith, Ph.D

During its 2021-22 session, the South Carolina General Assembly passed a cut in the personal income tax rate. Whew! Finally, the highest marginal personal income tax rate in the South (7%), which has never been cut since its adoption in 1959, is headed for extinction. That’s great news. It was also good to see the

Blog
August 31, 2022

What is South Carolina’s Business Climate?

Oran P. Smith, Ph.D

South Carolina is competitive on Corporate Taxes, and in recent years the Palmetto State has begun to chip away at high Individual Tax and Unemployment Insurance Tax rates.

Blog
January 4, 2022

Lurking in Build Back Better: An Attack on South Carolina Families

Oran P. Smith, Ph.D

It was the Affordable Care Act that promised to lower healthcare costs with the additional selling point “if you like your provider, you can keep it.” If BBB passes in its current form, middle class Americans will get a right hook to go with ACA’s left jab.