Caucus Press Release: Democrats spreading misguided myths about S.C. income tax cut
Mar 14, 2007
FOR IMMEDIATE RELEASE
Democrats spreading misguided myths about S.C. income tax cut
COLUMBIA -- House Democrats are misleading South Carolinians about the proposed Republican income tax cut, while pushing hundreds of irresponsible, out-of-control social program amendments to the budget, Republican leaders said Wednesday.
"The tax cut proposed this year is merely the first step in a three-year effort to cut the state's income tax rate from 7 percent to 6.4 percent," said House Majority Leader Jim Merrill. "South Carolinians are fiscally conservative. We have had nearly $2 billion in new state revenue in the past two years. This is an important step in returning that money to the taxpayers."
Even at 6.4 percent, South Carolina would have a higher income tax rate than Georgia. Florida and Tennessee -- two other states we compete with for jobs -- have no income tax.
Here are the facts:
* When the tax cut is implemented, the average South Carolina family making a household income of $44,173 per year, will actually receive a tax break more than 20 times larger than the Democrats are predicting.
* More importantly, an income tax cut will grow the economy, cut unemployment, and increase wages on top of cutting taxes, putting even more money in taxpayers' pockets.
* Democratic governors in five states have supported dramatic income tax cuts. For them, it was about growing the economy, not social warfare.
"Anybody who makes more than $13,000 a year will receive tax relief -- relief that will compound each year for the next three years," said Assistant Majority Leader Adam Taylor. "Is someone making $13,000 the 'wealthy' the Democrats are speaking about in floor speeches?"
This year's proposed income tax cut is yet another tax cut proposed by the House Republican Caucus in our continuing efforts to return money to the state's taxpayers.
* In 2004 and 2005 the House Republican Caucus approved broad income tax cuts. Both efforts were later scuttled in the Senate.
* In 2005, the House Republican Caucus was successful in approving an income tax cut for small businesses, which dramatically increased business income tax revenues in South Carolina while saving small businesses millions of dollars.
* In 2006, the House Republicans successfully pushed a historic property tax relief plan that will slash each homeowner's property tax bill by up to 60 percent this fall.
* House Republicans cut the sales tax on groceries from 5 to 3 percent in 2006.
"We are proposing tax cuts in addition to the strict state spending limit legislation we approved earlier this session," said Speaker of the House Bobby Harrell. "The reality is: The House Republican Caucus has a solid record of slashing taxes and keeping state spending under control. We're looking out for the taxpayers of South Carolina."
For more information:
Jason Zacher
(803) 734-3139
-30-
Click for a PDF copy of this press release.
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