A plan to cut the state’s income tax quickly passed the House’s budget writing committee Wednesday and could hit the House floor early next week.

The proposal would reduce the state’s top income tax rate to 4.75 percent from the current 7 percent over a decade, starting with those who earn a taxable income of $12,650.

State economists expect the plan, which tops Gov. Mark Sanford’s legislative agenda, would cost the state $959 million in tax revenue during the first 10 years.

By 2015, when the full cut would be realized, it would represent a 13 percent decrease in tax dollars coming into the state’s general fund.

Supporters say economic growth — spurred partly by increased spending and investment of income tax savings — likely would make up for any lost revenue caused by the tax cut.

Not everyone is convinced.

“I appreciate the governor’s interest in reducing the income tax, but I just don’t think we can afford it,” said Rep. Gilda Cobb-Hunter, D-Orangeburg, the only member of the House Ways and Means Committee to voice concern over the bill Wednesday.

In an exchange with Rep. Lanny Littlejohn, R-Spartanburg, Cobb-Hunter said the tax break would disproportionately favor the wealthy.

“We’ve got to focus on the people who don’t have, and wonder what role we play in that,” she said.

Littlejohn, whose subcommittee approved the bill last week, called the tax plan “compassionate and fair.”

The income tax reduction would not take effect in years in which state revenue from taxes grows less than 2 percent.

“This brings us in line with the other states around us and makes us more competitive on the Southeast scale,” Littlejohn said.

Georgia’s top personal income tax rate is 6 percent; North Carolina’s is 8.25 percent; and Florida is one of six states that has no personal income tax.

Sanford and others also argue that small businesses would benefit because many file as individuals and pay the highest rate.

The full House could vote on the bill as soon as Tuesday. House leaders want to fast-track the bill so they know how much money the state will have when they start work on next year’s budget.

The bill could face difficulties in the Senate, where a proposal to cut the income tax died last year. Some hope newly adopted Senate rules could help the bill.

Rep. Bill Cotty, R-Richland, said he’ll support the income tax proposal, but he’d rather see an overhaul of the entire tax code than piecemeal legislation.

Cotty said now is the time to consider bold changes since lawmakers don’t face re-election.

“Right now, we’re only taking one piece of the pie and not hitting the whole thing,” he said.

House members also are considering a proposal that would impose a 15 percent reassessment cap on homeowners’ property values.

The bill is similar to one passed by the General Assembly last year and vetoed by Sanford. But the new version would make home buyers responsible for reassessments above 15 percent.

A vote on that bill was delayed for two weeks.

Reach Stensland at (803) 771-8358 or jstensland@thestate.com