Media Release: SCPC statement on H.4216

South Carolina Policy Council Team

Written by
March 12, 2026

Media Release: SCPC statement on H.4216

March 11, 2026 

The South Carolina Policy Council supports continued progress toward comprehensive state income tax reform. H.4216 includes our amendment from last spring that ensures $200 million, or 25% of future budget surpluses, will be allocated to tax reform. This represents the most ambitious tax reform proposal in decades—a fight SCPC has championed since its inception. The amendment passed by a margin of 94–19, with unanimous Republican support and support from roughly half of Democratic members.

We believe this legislation moves South Carolina closer to a fairer, flatter tax system while establishing a realistic framework for long-term reform creating a clear and responsible path toward lowering and ultimately eliminating the state income tax. 

At the same time, we recognize an important reality: tax increases are never desirable. Transitioning to a flatter tax structure will result in higher tax liability for some individuals. While this is not a feature of the policy we support, it is a component of the bill as currently structured. Importantly, the majority of taxpayers who experience a change under the proposal will receive a tax cut. SCPC will continue to push for reforms to lower tax burdens for all South Carolinians. 

Meaningful income tax reform necessitates a responsible plan to either significantly reduce government spending or replace the lost revenue through other sources. Without addressing the spending side of the equation, eliminating the income tax will remain a long-term challenge. 

As economist Milton Friedman famously observed, “government spending is the real tax.” We agree. That is why the South Carolina Policy Council has consistently published research and urged lawmakers to limit the growth of state spending year after year. 

South Carolina must continue pursuing responsible disciplined spending in order to achieve eliminating the income tax for its citizens. The South Carolina Policy Council will continue to lead in the fight for income tax elimination. 

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