You like my hair tax cut? Gee thanks, just got it. South Carolina residents can expect to see a larger tax cut than originally planned thanks to a ~$14.5 million spending plan approved last week. The income tax rate will go from 6.3% to 6.2% with the goal of eventually bringing it down to an even 6%.
After you’re done celebrating, you might be asking, “Hey, where’s that money coming from?” Short answer: “Surplus sales tax dollars that have accumulated since 2020.”
Long answer: In 2006, taxes in owner-occupied houses were essentially cut in half, and in exchange, the state sales tax went from 5% to 6%. That increase eventually accumulated to ~$600 million. Who knew 1% could do so much?
Originally, the tax cut wasn’t supposed to happen until next year, but the Senate + Governor of South Carolina Henry McMaster pushed for it, and here we are.
Bonus: Read the full article.
