How much could SC income tax filers get back if a $1B rebate is approved?
South Carolina tax filers could get between $100 and $700 back in a one-time rebate as part of an income tax cut plan senators are considering.
State senators on Tuesday who oversee spending will look at the rebate proposal pushed by Senate Finance Chairman Harvey Peeler, R-Cherokee. The rebate is part of an income tax cut to bring the top rate to 5.7% from 7%.
But lawmakers would have to figure out how to divvy up the cash among tax filers.
A working proposal, subject to change, is based on a filer’s tax liability and includes sending each income tax filer at least $100. The 44% of filers who don’t have an income tax liability — because of the amount of deductions they take or they have low incomes — would get $100 each because they pay other taxes, such as sales tax.
“This $1 billion is not just income tax money, so I would be in favor of giving a small rebate to those who don’t pay any income tax,” said state Sen. Kevin Johnson, D-Clarendon.
The highest rebate amount would be $700, under the proposal.
State Sen. Tom Davis, R-Beaufort, said this plan would be skewed toward the middle class, and not the wealthy.
But the argument can be made a higher wage earner may spend more and pay more in sales tax over a year, which can make determining the best way to divide the money a challenge.
“I would support anything that is fair and equitable to everybody. It doesn’t matter how much money you earn whether it’s $10 a year or $10 million,” said state Sen. Tom Corbin, R-Greenville. “As long as it’s fair and equitable, rebating money is something I could get behind. How we get there, and how we figure it out with ... particularly this sales tax component is going to be the one with the most assumptions.”
The push for an income tax cut comes as lawmakers have $4.6 billion in additional money to spend when putting together a budget for the next fiscal year, which begins July 1. The House last month has passed its own income tax proposal.
Here are the proposed rebate amounts senators are considering based on a filer’s tax liability, which may be adjusted:
▪ $100 and less: $100
▪ $101-$125: $113
▪ $126-$150: $138
▪ $151-$200: $175
▪ $201-$250: $225
▪ $251-$300: $275
▪ $301-$400: $348
▪ $401-$500: $449
▪ $501-$600: $548
▪ $601-$700: $650
▪ $701 and higher: $700
Convention of states
Also this week, the state Senate will debate whether South Carolina should join 17 other states and call for a convention of states.
The bill, which has passed the House last year, calls for a convention of states where amendments can be proposed to the U.S. Constitution.
Thirty-four of the 50 states would need to pass similar legislation for a constitutional convention to happen.
Convention proponents say they could push changes to reign in federal spending, limit federal power and set term limits for members of Congress.
Opponents say a convention could lead to all sorts of changes to the Constitution, including the Second Amendment, the amendments passed at the end of the Civil War and women’s suffrage.
Any changes a convention proposes would need the approval of 38 state legislatures.
House passes election reforms
The House last week unanimously approved a move to allow for two weeks of no-excuse early voting ahead of an election.
The bill, which goes to the Senate for consideration, creates a permanent, no-excuse-necessary, in-person voting period Monday through Saturday, 8:30 a.m. to 6 p.m., in the two weeks ahead of general elections, primaries, primary runoffs, special and municipal elections.
Voting by mail, however, would still require an approved excuse, such as not being in town during an election.
Poll watchers would be allowed to be present during the vote counting process and counties would have to audit 5% of ballots cast in each general election to make sure tallies match what voting machines recorded.
Abortion bills stalled
Legislation aimed at banning all abortion in the state is stalled as Senate Minority Leader Brad Hutto, D-Orangeburg, and state Sen. Sandy Senn, R-Charleston, threatened to walk out of a Medical Affairs Committee meeting on Thursday to eliminate a quorum and prevent the legislation from moving forward.
One bill would ban abortions if the U.S. Supreme Court overturns Roe v. Wade, with the exception of extreme cases when the mother’s life is in serious danger. There would be no exceptions for rape or incest.
Another proposal would require doctors to give patients getting the abortion pill a paper explaining the effects could be reversed if the patient changes their mind after taking the first pill of a two-pill regimen.
South Carolina already bans abortions after 20 weeks, and a law signed last year to ban abortions after six weeks into a pregnancy was put on hold by a federal court.
“In the minority,” Hutto said, “we don’t have a lot of cards to play. But when we have cards to play, it’s not fair to ask us not to play it.”
