COLUMBIA--Gov. Mark Sanford's plan to reduce the
state's income tax has sailed through House committees this session, but
it's expected to face some loud critics when it gets to the floor.
The legislation, pitched as a way to attract wealthy retirees and help
small -business owners, would lower the state's top income tax rate to
4.75 percent from 7 percent over 10 years.
The state would spend $6 million on the tax cut for the fiscal year
beginning July 1. But when fully implemented in 10 years, the state would
spend nearly $1 billion.
The tax would be reduced only in years when revenues increase by at
least 2 percent. Because the tax break depends on a growing economy,
supporters say the break won't cost the state extra money.
The floor debate is expected next week. A healthier economic outlook
has state lawmakers more optimistic about the bill, which died in a Senate
committee when the session ended last year.