State House Republicans moved to increase taxes with H4997.
The bill applies a 3 percent tax rate to all taxable income. This would raise taxes on lower wage earners, who will struggle to pay.
The same lawmakers agreed to eliminate the corporate income tax, a major source of income. Additionally, "goodjobsfirst.org" finds: "Unaware workers subsidize employers with their state withholding taxes." These workers think their tax dollars support their kids' public schooling, roads and health care, police and fire protection and public services.
The same House leadership justifies lost taxes in the name of "job creation." Boeing's tax incentives totaled nearly $1 billion. The U.S. Department of Labor ranks South Carolina employment at 42nd in the nation. It could be worse, but the state administration hired 1,400 new employees (more government). South Carolina's answer to a revenue shortage is to raise taxes on marginal workers, cut health programs and education (already one of the worst in the nation), as well as service programs for elderly with disabilities.
The South Carolina Policy Council states, "In 2011, South Carolina accepted $8.6 billion from the federal government -- a third of the state budget." South Carolina's basic services are hugely dependent on federal cash.
The state received about $25 million from the national mortgage settlement. Instead of using the money as the settlement intended or for vital services, lawmakers stashed it away for corporate benefits. South Carolina's leadership depends on federal money and allows corporations to gorge on taxpayers.