COLUMBIA, S.C. — Lawmakers are spending part of a $600 million surplus on an effort some experts say might make South Carolina more competitive.
The state will use roughly $100 million of the surplus to cut income taxes permanently. Some experts say that while it might not make too much of a difference in the amount of pocket change you have—it’s part of a broader effort to reduce the income tax rate in South Carolina.
“It’s a way of the state telling people, 'We are going to lower your taxes to maybe attract other businesses and things in here,'" said Donny Burkett, a certified public accountant with Burkett, Burkett and Burkett.
He said that cutting income taxes from 6.4% to 6.2% won’t make that much of a difference for the average South Carolinian, but there is an impact.
“If you take $10,000, that’s a $20 tax savings,” he said.
It is one step closer to South Carolina’s goal to cut income taxes down to 6%.
In 2018, Gov. Henry McMaster called for the state to lower income taxes when the rate was 7%.
“I think it’s actually a really good goal to try to reduce those taxes and get it down to the 6%," Burkett said. "That gets us a lower tax rate than most tax rates in the United States.”
He said he believes it will help the state economy as well.
“We are competing with businesses from states like Texas and Florida that doesn’t have any tax liability at all.," he added.
The budget is still pending approval from the governor. It’ll go into effect on July 1.