Cuts, Cuts, and More Cuts
Last Thursday South Carolina legislators passed a substantial tax cut package, two weeks after the legislative session was scheduled to end. Fierce disagreement between policymakers caused delays but lawmakers finally reached a compromise. Starting November 1, South Carolina visitors and residents will no longer pay a three percent sales tax on groceries. Of course, there are more targeted ways to assist low income tax payers than simply eliminating the grocery tax altogether (take a look at ITEP's policy brief). Progressives did win a defensive victory by lobbying hard against the House plan to lower income tax rates for better off South Carolinians. Instead, the state's bottom income tax rate was eliminated - a move that benefits taxpayers at all income levels.
