Reforming the state’s tax code is one goal in the next legislative session for state lawmakers. But how it should be done — and who should bear the burden or get the breaks — remains up for debate.
The Senate Finance Taxation System Review and Reform Subcommittee this week heard from senior policy analyst of the Tax Foundation Jared Walczak. “Look for ways that we could achieve reform that would be in favor of simplicity, neutrality, transparency,” he told the panel. “That would be pro-growth.”
He said South Carolina’s taxes are low compared to other states, but that does not necessarily make it competitive.
“When we look at the tax code in South Carolina we certainly don’t see a state that has unusually high taxes,” he said. “In some cases, the opposite. We see a structure that is outdated.”
According to their website, the Tax Foundation is an independent, tax policy research organization. They work to improve lives through tax policy research and education that leads to greater economic growth and opportunity.
There have been numerous attempts to revamp South Carolina’s overall tax structure over the past decade, with limited success. Business groups say the state’s manufacturing property tax rate is one of the country’s highest, while towns and local governments say the 2006 law known as “Act 388” made property taxes too low and hurts their revenue.