SC Republican Leaders Fast-Track Flat Income Tax
Who Needs Enemies When You Have Republicans Like These? The Truth Regarding the H.4216 Flat Income Tax
The SC Republican establishment is attempting to push a tax hike on nearly 60% of South Carolinians.
On March 25, 2025, Governor Henry McMaster and SC Republican leadership held a press conference unveiling a new bill (H.4216) that would create a 3.99% flat income tax rate and eliminate the state’s assessment income tax based on a progressive federal system.
Looking At The Numbers
According to the South Carolina Freedom Caucus, the tax burden on the lower and middle class would increase between $327 and $924:
Currently, only approximately 44% of South Carolina tax filers currently pay no state income tax under the current progressive system. As noted by Conservatruth, this bill 1) shifts who pays, 2) creates its own deductions, and 3) uses a higher income base.
On March 31st, the South Carolina Revenue and Fiscal Affairs Office released an estimate fiscal impact statement on H.4216. They note that 59.4% of South Carolinians would see an increase, totaling $938.7 million and 21.2% of South Carolinians would see no change.
That means only 2 out of 10 South Carolinians MAY receive a tax break if this new state tax system was implemented.
Taxpayers That Are Hit Hardest
According to former Rep. Jonathon Hill, the SC taxpayers that will be hit the hardest is:
Single filers earning $40,000/year will see their taxes doubled from approximately $900 to approximately $1,600
Married/joint filers earning $48,000 will see their taxes tripled from approximately $440 to approximately $1,440
Will It Reach Its Flat 2.49% Income Tax Goal?
Bill sponsors claim that through this bill, the state income tax will eventually drop to 2.49%, saving “billions.” The truth? According to the bill’s narrow revenue “triggers,” the state would have to experience huge economic growth. However, the state’s economic growth seems to be headed in the opposite direction. Journalist Nick Reynolds stated in his latest article that “RFA data show employment growth in South Carolina has actually begun leveling off, while personal income growth is expected to slow.”
So, this promised 2.49% state income tax may never see fruition.
Is This A Cover For Increased Spending?
Currently the proposed budget for the 2025-2026 fiscal year sits at $41.7 billion. However, it is still early in the budget process as it currently sitting in Senate awaiting debate so that number may change.
Are legislators looking to also fast-track legalized gambling so they can create more revenue to make up for the small $219.6 million cut by the flat income tax bill? Keep an eye on H.4176 to see if that is true…
H.4216 Is Being Fast-Tracked
The flat tax bill was filed on March 25th and immediately sent to the House Ways and Means Committee. It was heard in subcommittee on April 1st and passed. Rep. Sarita Edgerton was the only dissenting public comment while groups like Americans For Prosperity South Carolina (Candice Carrol) and the South Carolina Chamber of commerce (Mike Brennan) spoke in favor. Listen to this short clip of Rep. Edgerton’s comments:
Of course, Jim DeMint’s and Rick Timmons’ (William Timmons' father) Palmetto Promise (Dr. Oran Smith) has also jumped on board online. Should we expect anything different from an organization that supported installing a health czar in South Carolina?
H.4216 has been scheduled for a hearing in front of the full House Ways and Means Committee on April 3rd at 9AM, the same exact time that Dr. Simmer’s confirmation hearing is scheduled in the Senate Medical Affairs Committee. How convenient!
Neither hearing is open to public comment.
Sponsors Quickly Dropping Support
As the truth is coming out about H.4216, House legislators are removing their names from the list of sponsors. My question is, why were they sponsors to begin with? If you haven’t read the bill and you don’t understand the consequences, you shouldn’t sign your name to it just because leadership told you to. Between April 1st and 2nd, Representatives Gibson, McCravy, Duncan, Oremus, Rankin, and Haddon have pulled their names from the sponsor list.
The following House sponsors are still listed: Bannister, Pope, G.M. Smith, B. Newton, Hiott, Murphy, Moss, Crawford, Bradley, Hager, M.M. Smith, Bustos, Landing, Lowe, Lawson, B.J. Cox, Jordan, Brittain, Forrest, Neese, Pedalino, Vaughan, Long, Montgomery, Davis, Sessions, Mitchell, Gatch, Herbkersman, Schuessler, Caskey, T. Moore, Hewitt, Erickson, Chapman, Bowers, Gilliam, Hardee, Teeple, Sanders, Guest, Bailey, Guffey, Holman, Yow, Ballentine, Martin, Calhoon, Taylor, Hartnett, Robbins, Willis, B.L. Cox, Ligon, Brewer, Gagnon, Hartz, Hixon and Wickensimer.
What You Can Do
Contact your House representative and ask them to vote against H.4216. Instead of passing the buck onto the lower/middle class, it is time to make major spending cuts in the proposed budget and completely repeal the state income tax.
You can find your House representative HERE.
We have a republic to preserve. It is already incredibly difficult for our younger generation to maintain a livable wage, much less purchase a house. How are they supposed to support a family with taxation such as this? Are we really going to keep cutting their legs off by codifying higher taxation?
Let’s get real. The SC General Assembly is simply acting as arsonists while pretending to be firemen. It is time to cutting spending instead of increasing it every year so the state income tax can be completely repealed.