Income tax cuts, rebates centerpiece of SC’s $13.8B budget

COLUMBIA, S.C. — Many South Carolina taxpayers may soon be getting several hundred dollars in tax rebates on top of a cut in their regular tax rates after a group of powerful lawmakers from the House and Senate agreed Friday to a compromise on the state budget. Along with the tax cut, the plan raises the minimum salary for teachers from $36,000 to $40,000, puts $1 billion extra into road repair and expansion, gives state employees a 3% raise and $1,500 bonus, raises a number of state law enforcement salaries, gives colleges money if they freeze tuition and sets aside about $1 billion in case this is the year the economy craters. The original rebate plan passed by the Senate provided everyone who filed income tax a rebate whether they paid or not, noting those people also paid sales taxes and other money into the government’s accounts. “Everyone has skin in the game but this is an income tax rebate and so no income tax, no rebate,” said House Ways and Means Chairman Gary Simrill, who called it the most fair solution. The House plan initially had no rebate, while Peeler introduced his plan by saying “you can’t out tax cut Harvey Peeler.” “So far they can’t,” Peeler said when reminded of his quote Friday.