Nancy Mace's Plan for Permanent Tax Cuts in South Carolina

South Carolina's Tax Landscape

• 📊 South Carolina currently has the highest state income tax rate in the Southeast, with a 6% sales tax and high property taxes.
• 📉 Neighboring states like North Carolina and Georgia have lower income taxes, while Florida, Tennessee, and Texas have zero state income tax.

State Budget and Spending

• 💰 The state budget is over $40 billion annually, with the general fund comprising about one-third.
• 📈 The general fund has increased significantly from around $9 billion pre-COVID to $13.2 billion in the 2024-2025 fiscal year.
• ⏸️ Mace proposes freezing spending at $11.6 billion for the 2022-2023 fiscal year to redirect excess revenue.

Tax Cut Strategy

• 💸 By freezing spending and utilizing record revenues, Mace plans to return money to taxpayers through permanent tax cuts.
• 🎯 This approach aims to make South Carolina more competitive with other states.

Reallocating Funds

• ✂️ The plan includes cutting earmarks, which have ballooned from $30 million to $700 million in two years, to accelerate tax rebates.
• 📉 Further speeding up tax reductions to zero within five years could be achieved by cutting agency spending by 2-4% and freezing state government hiring.

Social Issues

• 🚻 Mace also stated that if a bathroom bill is presented to her on day one as governor, she will sign it into law to keep men out of women's spaces.