Taxes and Spending

How to get real income tax relief in South Carolina

An objective fact about South Carolina’s fiscal trajectory is that the state general fund has nearly tripled in the last 25 years. Because the state constitution mandates a balanced budget, this growth means tax revenue has climbed in step with spending. 

Sam Aaron

Written by
June 20, 2025

  • How to get real income tax relief in South Carolina

    An objective fact about South Carolina’s fiscal trajectory is that the state general fund has nearly tripled in the last 25 years. Because the state constitution mandates a balanced budget, this growth means tax revenue has climbed in step with spending. 
    Sam Aaron

    Written by
    June 20, 2025

  • Conference committee budget breakdown: Increased revenue forecast results in a staggering $15.1B general fund

    Update 6/3/2025: Governor McMaster issued his veto message on June 3, containing 11 line-item vetoes totaling just over $1 million. Each veto targets a specific budget proviso.  On Wednesday, May 28, lawmakers in both the House and Senate voted to adopt the conference committee report for the fiscal year 2026...
    Sam Aaron

    Written by
    May 29, 2025

  • South Carolina moves closer to zero income tax

    By Vance Ginn, Ph.D. and Sam Aaron South Carolina just took a major step toward meaningful tax reform—and closer to becoming a national leader in economic competitiveness. Last Tuesday, the South Carolina House of Representatives passed an amended version of H.4216, a landmark income-tax reform bill that incorporates many of...
    Vance Ginn Ph.D.

    Written by
    May 09, 2025

  • These provisos in South Carolina’s FY26 budget warrant closer scrutiny

    When the S.C. Senate passed their budget without new legislator-requested earmarks, “one-time” temporary laws known as “provisos” were still included.   Provisos outline directives for the use of budget funds, with some provisos including nonrecurring fund disbursements that represent continued earmark spending from past years.  
    Neil Wolin

    Written by
    May 09, 2025

  • Path to Prosperity: A Fiscal Roadmap for South Carolina

    Key Takeaways South Carolina’s complex and inefficient tax system ranks 33rd in tax competitiveness nationally due to irresponsible spending. These fiscal burdens include a complex, inefficient tax system that penalizes work, investment, and entrepreneurship. H.4216 would provide a much-needed income tax rate reduction, but is unfortunately designed in a way...
    Vance Ginn Ph.D.

    Written by
    April 22, 2025

  • No pork in this year's budget?

    The State Senate has proposed their $14.4 billion general funds budget from the Senate finance committee without earmarks, setting the stage for the House to consider omitting earmarks in their second budget draft.
    Neil Wolin

    Written by
    April 18, 2025

  • Budget breakdown: The S.C. House's 2026 budget

    The South Carolina House has passed the FY 2026 budget with plenty of fireworks during debate. The proposed spending plan – which would be the largest in state history, taking effect on July 1 – puts billions of dollars on the line. With agencies seeking budget increases and new spending requests piling up, where are your taxpayer dollars going?  
    Sam Aaron

    Written by
    March 14, 2025

  • Major tax cuts on the table: Will S.C. eliminate state income tax?

    Lawmakers have filed multiple bills this legislative session aimed at reducing or eliminating state income tax. Expediting a decrease in state income tax rates will position South Carolina to be economically competitive amidst significant population growth.   Rather than relying on corporate welfare to attract industry, South Carolina should utilize...
    Neil Wolin

    Written by
    March 07, 2025

  • Governor’s FY 2026 executive budget: The Good and The Bad

    On Monday, Gov. Henry McMaster released his proposed state budget for the 2025-26 fiscal year, which starts July 1. The S.C. Legislature, which started its regular session on Tuesday, will consider it while working on their own budget versions.  How does McMaster’s 173-page executive budget compare to past ones?  The...
    Sam Aaron

    Written by
    January 17, 2025

  • The 2026 South Carolina Responsible Budget: A Blueprint for Fiscal Discipline and Economic Growth

    By Vance Ginn, PhD., and Sam Aaron South Carolina has enjoyed significant economic success. With strong labor market growth and a favorable climate for business investment, the state continues to be one of the fastest-growing states in the nation. However, without a responsible approach to budgeting, this progress risks being...
    Sam Aaron

    Written by
    January 06, 2025