State Sen. Katrina Shealy wants to eliminate the state’s individual income tax, and she has Republican Gov. Nikki Haley’s blessing.
The Lexington County Republican filed a bill Tuesday that would abolish the state’s individual income tax over the next five years. If the bill becomes law, South Carolina would join seven other states – including Texas and Florida – that do not have state income taxes.
“That would be like a 9 percent cut (in the first year followed by other cuts) if every agency cut their budget,” Shealy said. “My husband has gone without a paycheck the last two years because the way his business has been. ... So if we’ve had to do it, the state needs to do it, too.”
South Carolina would lose $3.4 billion in revenue – more than half of its general fund. Shealy does not propose to replace that money with other taxes. Instead, she says the government should spend less.
Initial reaction from other Republicans, who control the Legislature, was skeptical.
“It’s very easy to propose doing away with all taxes, but there are actual reasons that we raise money,” said state Rep. Tommy Stringer, who led a House Republican tax study committee and has proposed several tax reforms. “There is infrastructure, prisons, law enforcement, education – all these things.”