COLUMBIA, S.C. — As the race for South Carolina’s next governor begins, income tax reform is already emerging as a key issue on the campaign trail.
Several candidates who have entered the race so far say they support eliminating the state income tax altogether. It’s a move that would bring South Carolina in line with eight other states that currently do not tax income.
South Carolina has a tiered income tax system, with a top rate of 6 percent. Over the past several years, lawmakers have gradually reduced that top rate from 7%, and now have introduced a plan to phase out income taxes entirely. That plan, already passed by the House, ties future reductions to economic growth. If state revenues rise by at least 5 percent year-over-year, the income tax would be lowered incrementally until it is collapsed into a 1.99% flat tax, which continues to be lowered until it hits 0…