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GREER—Gov. Mark Sanford traveled to Greer, Dec. 19, and other South Carolina cities to unveil a proposal that will be included in his executive budget, aimed at simplifying and lowering state income taxes.
The Greer event took place at the Greer Flooring Center on North Main Street. In attendance were state representatives Rex Rice, Phillip Shoopman, Garry Smith and Joseph Mahaffey.
The proposal would offer South Carolinians two options for paying their taxes, starting in 2009: to either pay the current 7 percent rate and be eligible for current deductions, or to pay a flat tax of 3.4 percent with no deductions.
The measure would mean about $107 million in tax relief, offset by a 30-cents-per-pack increase to the cigarette tax.
The flat tax would put South Carolina more in line with other Southeastern states’ income tax rates. Sanford said that at 7 percent, South Carolina’s rate is effectively the highest in the region.
“Whether you’re looking nationally or internationally, the bottom line is that marginal rates matter in terms of bringing jobs and investment to our state,” Gov. Sanford said. “As well, we think this plan has a host of benefits when it comes to improving the quality of life for thousands of South Carolinians by impacting the cost of smoking, and therefore the rate of smoking.”
Seven other states currently have a flat tax, Gov. Sanford said, all well below South Carolina’s top marginal income tax rate of 7 percent.
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