SC lawmakers push new tax structure

Thursday, March 31, 2011 4:39 AM
Last updated 4:41 AM

COLUMBIA -- Calling it a "jobs bill," Aiken Rep. Bill Taylor announced legislation aimed at implementing a new tax structure in South Carolina, one that replaces income tax, corporate income taxes, and other taxes with a single tax on new goods and services.

"For both the citizens of South Carolina and the businesses, April 15 will just be another day," Taylor said. "There won't be a state income tax."

The bill has drawn dozens of Republican sponsors but recently picked up cosponsorships from Democratic Reps. Lonnie Hosey of Barnwell and Bill Clyburn of Aiken. Under the proposal, a consumer would not pay taxes on used items.

The bill, H. 3993 is dubbed "The Fair Tax," and exists in the Senate as S. 274. Sen. Larry Grooms, R-Bonneau, the chief sponsor on the Senate bill, told onlookers Wednesday that the proposals would spur growth.

"It's ludicrous to tax the very thing that you work hard for -- income," said Grooms. "We're going to create an opportunity for people to make money in South Carolina. We're going to grow our economy, and the only way we're gonna be able to do this successfully is to become the first state ... to pass the Fair Tax."

The issue is a perennial one at the federal level.

The name "Fair Tax," used by supporters, is misleading, said Sue Berkowitz, executive director of the Appleseed Legal Justice Center, which advocates for low-income residents.

"It's anything but fair," she said. "There is nothing more regressive than this."
Berkowitz said the change would drive up the percentage of income that lower-income families spend on goods and services, while giving additional financial advantages to people are well off.

Reach Sarita Chourey at sarita.chourey@morris.com or (803) 727-4257

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Techfan
6461
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Techfan 03/31/11 - 04:18 am
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I'm sure all of the

I'm sure all of the businesses in adjoining states will thank them.

gnatman1102
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gnatman1102 03/31/11 - 06:45 am
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People need to understand

People need to understand that a "Fair Tax" should not drive up cost of goods. The price of goods now includes the employee tax withheld by the business that must go to the government. With no state income tax, the actual price of goods can be lowered proportionly. Bring in a sales/consumption tax and the difference is a wash.

Since no personal state income tax, the Tax Commission can be reduced substantially which could then be factored into a lower consumption tax. This would benefit everyone.

Bring on the "Fair Tax."

Labatt
0
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Labatt 03/31/11 - 07:41 am
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Best news we have heard in a

Best news we have heard in a while.

Pat D
2
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Pat D 03/31/11 - 08:15 am
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This is the largest shift of

This is the largest shift of power from government to the people that has been proposed in many years!.....Businesses will rush to locate in South Carolina bringing jobs and economic improvement with them....All of the people who pay no taxes now such as organized crime, drug dealers, and illegal aliens will now contribute to the expense of running the government when they buy new products and services thus lessening the tax load on everybody....Any family that is at or below the poverty level in income will pay no state taxes at all because of the prebate check sent each month to cover the Fair Tax paid on the necessities of living....This payment for a family of four will be about $150 per month every month....The only group that will pay the full amount of the Fair Tax will be illegal aliens who will not be eligible for the prebate.

Pat D
2
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Pat D 03/31/11 - 08:33 am
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As regards the comment by Sue

As regards the comment by Sue Berkowitz;

At the national level, the Fair Tax REPLACES all taxes on income and closes down the IRS, it replaces both the Social Security tax and Medicare taxes (those programs will be funded by the Fair Tax) thus allowing employers to pay the employee a full paycheck with no withholding for federal taxes....Since the payroll taxes, Medicare in particular, are the most regressive taxes that we pay because everyone pays the same regardless of income, eliminating them in favor of the Fair Tax is less regressive, not more so.

Also, the prebate, which on the national level is about $500 for a family of four, means that anyone at the poverty level or below will pay no federal tax at all!....the only people who will pay the full Fair Tax will be those who are not eligible for the prebate such as noncitizens or tourists from outside of the country.

The Fair Tax will be the PROGRESSIVE tax that we pay!

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