NFIB State Director Ben Homeyer released the following statement today concerning House and Senate bills that would reduce state income tax rates for individuals and most small business owners:
“It’s been a tumultuous couple of years for South Carolina’s small businesses, beginning with the COVID-19 shutdowns that began two years ago this month and continuing today with labor and supply chain issues, rising fuel prices, and soaring inflation,” Homeyer said. According to the latest NFIB Small Business Optimism Index, 26 percent of small business owners nationwide said inflation is the single most important problem in operating their business — the highest reading since the third quarter of 1981.
“It’s absolutely essential that the legislature passes meaningful state income tax reform this session,” Homeyer said. “They are substantial differences between the House and Senate versions of the bill, but H.4880 and S.1087 would have a tremendous impact on South Carolina’s families and small businesses, especially now, when the state is operating with a budget surplus.” Most small businesses in the state are organized as pass-through entities, so owners pay taxes at the individual rather than the corporate rates, he said.
“We hope House and Senate leaders can come together and pass state income tax reforms that would have a lasting impact on South Carolina’s future.”