A bill to lower your state income taxes has 90 co-sponsors in the state House of Representatives, assuring it of passage in that body of 124 members. It was introduced in the House Tuesday. Gov. Mark Sanford started talking about his plan last year, and it now has strong support at the Statehouse.

The bill would lower the state's top income tax rate from 7 percent to 4.75 percent, reducing it gradually over ten years to lessen the impact on the state budget. The reductions would come only in years with growth of at least 2 percent.

Gov. Sanford says reducing the state income tax rate will help the state reverse its recent job losses.

"Florida has seen phenomenal job growth and small business creation in part because they have no income tax," Gov. Sanford says. "If you look at the Beacon Hill study, what it showed was that New Jersey gained 25,000 jobs as they lowered their income tax rate." 

While there are Democrats co-sponsoring the bill in the House, Democratic leaders say the income tax reduction plan will hurt a state budget already devastated by recent cuts.

They say that will mean more cuts in services like education and health care, while providing taxpayers with no relief.

House Minority Leader Rep. James Smith says, "We are for addressing not an income tax relief that will not be a tax relief, it'll be a tax shift. We are for delivering on what South Carolinians want and need and that's property tax relief."

Rep. Vida Miller, D-Pawleys Island, introduced a bill Tuesday to give homeowners a break on their property taxes. It would be paid for through growth.

So how much would the income tax cut mean to you, if it passes? USC economist Don Schunk says it's difficult to say, since there are so many variables when it comes to taxes.

But, generally, he says a family with an income of $25,000 probably would see no tax relief. The state's top tax rate of 7 percent kicks in at a taxable income of $12,000. That's not how much someone earns, but their "taxable income" after deductions.

He says someone with a $25,000 income likely has taxable income under $12,000, and therefore would get no tax relief.

For a family making $50,000, assuming a taxable income of around $28,500, their state income tax at 7 percent would be $1,155. At the lower rate of 4.75 percent, they would pay $784, for an annual savings of $371.

While that would be more money in taxpayers' pockets, he's not sure about the governor's claims of job creation. "The evidence, in terms of linking income tax cuts to small business growth or business growth in general, that evidence just is not that convincing." 

As for Democrats' claims that the tax cut would cripple the state budget, he's also skeptical. "It will cut into government services. But I don't think it will necessarily do so in a disastrous way," Dr. Schunk says.

News Channel 7 asked the governor whether lowering the income tax by such small amounts over ten years would really help taxpayers. He said, "A, it's real money into somebody's pocket at home. But, I think it's significant, what this is very, very specifically aimed at are the plethora of small businesses that make up South Carolina. South Carolina is a state of small businesses. This is a tax change that would impact every one of their bottom lines."