COLUMBIA, SC (WSPA) – A panel of state lawmakers working on a budget compromise say they have made ‘a lot’ of progress.
The committee, made up of three House members and three Senators, are working on finalizing the state’s nearly $13 billion spending plan for this upcoming fiscal year.
They met Tuesday afternoon at the State House to go over budget provisos both sides agreed on. After that, they adjourned to continue their work on a compromise with staff behind closed doors.
Some of the sticking points include how big of an income tax cut South Carolinians could see and if the state will send out one time rebates to taxpayers with surplus funds.
The House and Senate both included income tax relief in their respective budgets. Both slash the state’s highest income tax rate and would cost $1 billion when all is said and done.
The House wants to cut it from 7% to 6.5% right away. Then over a five year period, if the state’s economy continues to grow, reduce it to 6%. The state’s middle tax brackets would be collapsed to 3% under the House’s plan.
The Senate’s plan would reduce the highest rate to 5.7% immediately. Senators also passed a one-time rebate for tax payers in South Carolina that would cost about $1 billion. Rebates of $100 ranging up to $700 would be sent out.
Lawmakers on the committee hope to have a budget finalized by the end of the week. The next fiscal year starts July 1st.