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Update March 18th: Handling of Haley's "Tax Relief Tour" earns ideas no love...
The resounding note coming from S.C. Gov. Nikki Haley's "Tax Relief Tour" last week is a discussion about how, much like her predecessor Mark Sanford, she doesn't work well with the Legislature.
The Post and Courier has the rundown; take a read here.
In the sidebar on the bottom left of that article you can get a bullet-point overview of Haley's tax reduction ideas.
Update March 16th: Sun News contributor, Dan Golden has a great write-up over at The Sun News' Opinion Blog regarding Nikki Haley's proposed tax policy.
Complaints that the state is struggling under a burden of overtaxation are simply hogwash. According to the nonpartisan Tax Foundation, South Carolina is 49th in the country when it comes to state and local tax burden per capita, and 50th in the nation in state tax collections per capita. Our state is already well on our way to the small government that many are so confident it needs.
Golden also speks with Rob Salvino, research economist at Coastal Carolina University about tax cuts for businesses and how they don't necessarily mean more jobs, but more profits.
Hop on over and give it a read.
First Report March 13: Governor Nikki Haley made a stop along the Grand Strand yesterday, March 13th to discuss her proposed tax plan aimed at relieving state taxes on low income and corporations.
Haley says her tax plan will put $140 million dollars back in taxpayers pockets and hopes that this will give South Carolina's economy a much needed boost. According to SCnow.com, "The plan includes phasing out the corporate income tax and making it easier to reduce property taxes. It also would consolidate six individual income tax brackets to three while cutting rates, which would save the average taxpayer $84 a year."
The Governor has some detractors, some wonder what Haley plans on replacing the missing funds that are from the current income tax, and if the jobs she hopes to create will equal the loss in taxes.
The state and Governor Haley approved the largest budget in our history this year, adding $1 billion dollars in new spending.
Will cutting the tax rate for corporations woo companies into setting up shop in the state of South Carolina? Most companies decide on where to go due to work force and incentives, however, according to Wikipedia, paid state taxes by corporations are tax deductible on the Federal level:
Federal corporate income tax is imposed at graduated rates from 15% to 35%. The lower rate brackets are phased out at higher rates of income, with all income subject to tax at 34% to 35% where taxable income exceeds $335,000. All income is taxed at the same rate. Additional tax rates imposed below the federal level vary widely by jurisdiction, from under 1% to over 16%. State and local income taxes are allowed as tax deductions in computing Federal taxable income.
Head on over to SCnow.com for their full write-up and broadcast.
Are SC's taxes too high?
South Carolina's highest income tax rate is 7% on anyone making $13,700 a year. So if you make minimum wage or make millions, you pay the same tax rate.
According to Forbes.com, the top ten highest state income tax rates are as follows: Hawaii 11%, California 10.55%, Rhode Island 9.9%, Vermont 9.5%, Oregon 9%, Iowa 8.98%, New York and New Jersey at 8.97%, Maine 8.5%, Minnesota 7.85.
Additionally, there are 27 states with taxes that range from 3%-6.9%, with an average of around 5.5%. Interestingly, North Carolina has the same 7% tax bracket as we do in South Carolina.