Caucus Press Release: House Approves Tax Cut Package
Jun 21, 2007
Speaker Bobby Harrell
FOR IMMEDIATE RELEASE
House Approves Tax Cut Package
Budget agreement finalizes package of conservative reforms
COLUMBIA -- House Republicans approved a package of more than $220 million in tax cuts today, eliminating the grocery tax and exempting more income from the state income tax. The cuts were the centerpiece of the state's $7.3 billion budget approved Thursday.
"With our economy generating a record amount of new money this year, tax relief was not an option, it was a mandate," said Speaker Harrell. "Handled by the taxpayers and the free market, and not by the government, returning over $220 million will be a substantial boost to our state's economy."
The income tax cut approved in the conference committee eliminates an entire tax bracket by exempting more money from the state income tax. The income tax cut totals $86 million.
"The governor asked for $200 million in tax cuts and we gave him $220 million," said Majority Leader Jim Merrill. "We scored another victory for the taxpayers of South Carolina."
Conservatives cheered the complete elimination of the grocery tax. The "tax on unprepared food" disproportionately hurts working families. House Republican Caucus leaders have said for two sessions that taxes on necessities such as food were blatantly unfair.
"The only way for conservatives to really reduce a tax is to eliminate it entirely," said Assistant Majority Leader Adam Taylor. "I'll bid a fond farewell to the grocery tax, and I dare future General Assemblies to bring back this unfair tax back."
The agreement on the tax cuts and the budget is the final major hurdle for conservatives in the 2007 legislative session. Thursday's action capped off a week that saw significant reforms to the state's worker's compensation system, the Department of Transportation, and then this major package of tax cuts.
The budget also includes money for a pay raise for teachers, to hire highway patrol troopers, to help recruit new business to South Carolina, and to provide health insurance to more children.
"I'm so proud for the way my fellow Republicans stood together to fight for our conservative ideals," said Speaker Harrell. "We achieved major victories this year and stand strong heading into the second half of the two-year session in January."
For More Information:
Speaker Bobby Harrell
(803) 734-3125
Majority Leader Jim Merrill
(803) 734-3139
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