Tax & Budget

The single greatest thing we could do to compete with our neighboring states to attract jobs and create new economic growth? Comprehensive tax reform. Lower rates and fewer special-interest exemptions is South Carolina’s winning formula to sustain and grow a bright economic future.

Funding South Carolina’s Future

As states like Michigan and Wisconsin discover the secret sauce of right-to-work, South Carolina stands to lose that current competitive advantage. In the most recent release of the Rich States, Poor States Economic Competitiveness Index, while our current performance puts us at #20, our outlook has fallen to #32, largely based on our levels of debt and uncompetitive tax structure.

Comprehensive tax reform is the single greatest next step we could take to ensure a bright outlook for South Carolina’s future. Our top marginal personal income tax rate is the highest in the Southeast. And while our corporate tax rate of 5% is one of the lowest in the nation, we exempt more corporate income than we collect, with the majority of credits accruing to larger, newer companies rather than smaller, older in-state companies. This imbalance cannot be sustained indefinitely and is not a long-term strategy for economic competitiveness.

This report outlines key features of the tax system currently in place in South Carolina and is organized by key issues affecting the impact of our various forms of taxes on the economy.

Latest Publications

The Wrong Solution for a Real Problem

How can we be compassionately responsive to the needs of low-to-middle income South Carolinians in regards to housing affordability?

How Federal Grants Cause More State Spending

A new comprehensive study from the Interstate Policy Alliance (IPA) and Palmetto Promise Institute (PPI) concludes that increased federal spending…


Tax & Budget In the News

Other states are figuring it out…will SC?

Add Pennsylvania to the list of states which have substantively reformed their pension system. Will South Carolina follow […]

Wait…SC spends how much?

How big is the budget? What are South Carolina’s sources of revenue? Where does all this money go? Consider these charts.

Not Finished with Pension Reform Yet

One in nine South Carolina residents are served by the Palmetto State’s public pension plans. The woefully underfunded […]