SC House unanimously approves state income tax cut bill

COLUMBIA, SC (WSPA) — The South Carolina House of Representatives voted 110 to 0 to give a second reading Wednesday to a $600 million tax cut package.

H.4880 would immediately reduce the top tax bracket in South Carolina from 7% to 6.5%. House leaders said the legislation would eventually cut the top rate to 6%. Other state tax brackets would also see decreases.

The bill would also eliminate taxes on military retirement income for all veterans in the state.

Democrats expressed support for the legislation in the House on Wednesday. They thanked the sponsors of the bill for reducing average tax brackets to a single 3% tax bracket.

After the vote, Governor McMaster tweeted “….The House of Representatives just took a huge first step toward lowering income taxes in South Carolina. Our work won’t be done this session until I sign a major tax cut into law.

Currently, South Carolina’s top income tax rate is higher than Georgia and North Carolina. But the state’s effective tax rate, what people actually pay in taxes after deductions and exemptions, is lower than both states.

In a statement sent Wednesday after the vote, Gov. Henry McMaster (R-South Carolina) thanked House members for passing the bill. He wrote: “Our work will not be done this session until I sign a significant tax cut into law.”

The bill is expected to pass third reading Thursday in the House before being sent to the Senate. All members of the House and the Governor are eligible for re-election in 2022.

The senators are also considering their own $2 billion tax cut proposal.

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