Staff reports | The South Carolina Senate late Wednesday passed a bill aiming to make the state legal system fairer, clearing a huge hurdle after months of fights, weeks of debate and hours of closed-door negotiations.
Despite the passage, the bill’s future is murky. Similar legislation imploded last year, and the bill still needs to be passed by the S.C. House. It has taken a much narrower approach on similar matters, passing a bill earlier this year that focuses specifically more on liquor liability insurance reform for bars and restaurants.
Senators voted 35-7 late Wednesday to approve the so-called “tort-reform bill,” officially passing it Thursday. Supporters say they believe the legislation will ultimately help South Carolinians save money on insurance costs, while others argue it could be a helping hand for the insurance companies rather than their customers.
In a post on X on Thursday, S.C. Gov. Henry McMaster called the passage of this bill “great news,” saying it was “a wonderful example of leadership, determination, hard work, and collaboration.”
But Democrats, from whom all seven of the votes against the bill came, said there is no data from insurance companies that suggests premiums will go down as a result of its passage. – Skyler Baldwin
S.C. GOP proposes flat income tax flat that would shift burden
Republican leaders in the S.C. General Assembly on Tuesday introduced a new income tax structure proposing billions of dollars in tax changes that would drop the state’s income tax below nearby states.
But critics say the change would simply shift the income tax burden from the rich to the working poor and many in the middle class.
The new proposal would drop the state’s income tax rate from the current 6.2% rate, which leaders say is the highest in the Southeast, to 3.99% in 2026, which they say would cut South Carolina’s income tax rate to the lowest in the region.
“A few years ago, we took a big step [toward lowering income taxes], but we need to take another one,” Gov. Henry McMaster said at a March 25 news conference with GOP leaders announcing new proposed legislation. “So let’s get to work, let’s iron out the details, let’s move forward [and] let’s take that tax down.”
State business leaders argued the lower top rate would make South Carolina more competitive and bring more talent to the state. While the proposal generally would cut taxes for the state’s wealthiest, it would also include tax increases for the roughly 44% of South Carolinians who currently don’t pay state income taxes, many of whom are among the poorest individuals.
What’s more, the new rate would be accompanied by a significant reduction in the state’s standard deduction, effectively raising taxes for an as-yet-unknown number of state residents. Leaders have said that a breakdown of the impacts of that change will be available in the days ahead.
The state’s poorest people likely would bear most of the burden.
A January story in the Charleston City Paper highlighted how income tax cuts “could lead to a bait and switch, where tax rates go down but the average South Carolinian sees no real benefit — or possibly even a backdoor tax increase.”
“Since 2021, about half the states in the country have cut income taxes,” said Neva Butkus, a tax policy analyst with the Institute on Taxation and Economic Policy in Washington, D.C.. “And they eventually have to pay for that with something — usually raising or expanding sales taxes and fees or kicking responsibilities down to the locals, all of which ask more of lower- and middle-income families.”
Some worry that potentially lower revenues to the state after an income tax cut could lead it vulnerable, especially now with the federal government working to shift funding burdens to states.
“We’re the fastest growing state in the nation, which means that as people move in here, our infrastructure needs — roads, schools, fire departments, water and sewer — are growing, too,” state Sen. Brad Hutto, D-Orangeburg, said in January. “We just need to make sure that as we lower one tax, we don’t unwittingly leave ourselves without enough money to run state government.” – Jack O’Toole
In other recent news
S.C., N.C. residents chased from homes by rain, then fire. Six months ago, many packed up their homes and fled from Hurricane Helene, a storm which wrought destruction across swaths of the Carolinas. Now, some are at risk again as wildfires burn across more than 20 square miles in mostly rugged, remote forests.
S.C. lawmakers press pause on anti-DEI bill. In a rare move, the S.C. House halted debate on an anti-DEI bill at the request of Education Chairwoman Shannon Erickson.
S.C. energy bill brings optimism for some, concern for others. The state’s growing population strikes concerns for state leaders about the future of energy, but a bill addressing the issue has an organization concerned for impacts on residential ratepayers.
S.C. bills seek to improve safety for S.C. worshipers and students. A pair of bills seek to allow religious institutions to apply for security grants and require extra training for private security in K-12 schools.
S.C. legislators look to expand Heritage Act. New bills in the S.C. House and Senate would place additional restrictions on historical monument removals across the state. According to reports, the move is largely driven by frustration with Charleston’s 2020 removal of the John C. Calhoun memorial in Marion Square.
S.C. Senate considers new restrictions on solar farms. The S.C. Senate is weighing new restrictions on solar farms in response to concerns that they’re disrupting rural residents’ way of life.
S.C. Senate panel calls for the removal of Loftis from office. South Carolina senators are recommending Treasurer Curtis Loftis be removed from office, citing that he “willfully neglected his duties” for his role in a $1.8 billion accounting error that went unreported for nearly a decade.
Lawmaker seeks to loosen offenses for tree trimmers. A bill proposed in the Statehouse would remove criminal penalties for trespassing and willfully cutting and potentially injuring your neighbor’s trees if they encroach on your property.
S.C. attorney general suggests residents to delete 23andMe data. S.C. Attorney General Alan Wilson says South Carolinians who have accounts with the genetic testing company 23andMe should consider deleting them after the company announced it filed for Chapter 11 bankruptcy protection and that its co-founder and CEO resigned.
Norman says he’ll likely run for governor. U.S. Rep. Ralph Norman, R-S.C., says he’s planning a 2026 GOP primary run to succeed term-limited Gov. Henry McMaster.
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