State lawmakers have proposed an overhaul of S.C.’s tax code in an effort to tax people more fairly. Among the proposed changes is the idea to reintroduce a sales tax on groceries.
One of the proposals introduced these ways to lower tax rates + increase the number of people paying into the system:
Reducing sales tax rate from 6% to 3%
Lowering state’s top income tax rate from 7% to 5%
Reducing sales-tax exemptions on over $70 billion in now-untaxed goods + services
Reducing “inequitable” income-tax deductions + providing standard deductions of $10,000 for single filers, $15,000 for married couples + $20,000 for taxpayers filing as the head of a household.
How would the proposal affect how much you pay in income taxes?
Those earning between $30K-$90K would pay about $35 more annually.
Those earning between $90K-$100K would pay about $76 less annually.
Those earning between $100K-$200K would pay about $136 less annually.
Those making $200K+ would pay about $640 more annually.
The proposed changes could result in S.C. raising $133 million more in taxes.
