TRAC Bill Moves Out of Senate Subcommittee
Tax Reform legislation aims to overhaul the state tax structure
Today, a Senate Finance Subcommittee gave a favorable report to a bill creating an independent tax realignment commission (TRAC). This is the first critical step towards passing legislation to bring about a comprehensive look at South Carolina’s tax structure. Numerous tax exemptions initiated over the years by the General Assembly have created an imbalanced tax system that is in serious need of reform. Creating a more balanced system would create a more level playing field and would encourage greater economic growth.
Senator Hugh Leatherman (R-Florence), Chairman of Senate Finance Committee and author of the bill, noted, “South Carolina’s tax code essentially has been cobbled together over many decades when economic forces were decidedly different from today’s reality. Some of our tax policies were placed on the books before the computer age. Much that governs us today goes back to when farming and manufacturing were dominant. Today we are competing in a knowledge-based global economy. Our competitors no longer are Georgia and North Carolina, but India and China.”
Leatherman continued, “An independent studies over the last several years concluded that our state is not as competitive as it must be to attract high-tech jobs and create new businesses within our borders. A tax code based upon realities of today is absolutely essential if we are to have the quality of life that all of us want. I thank Senator O’Dell and the Sub-Committee for today’s action on this most important legislation and look forward to full Committee debate on Tuesday”.
Senator Billy O’Dell (R-Abbeville), Chairman of the Finance Subcommittee on Sales and Income Taxation said “this is a bill we have been working on for over a year now. We need to keep pushing this plan forward to determine how to make our tax code more equitable for South Carolina’s taxpayers and businesses.”
The commission as designated under this bill would be an independent group comprised of non-legislators possessing certain qualifications in economics and business that are specifically spelled out in the legislation. The members would be charged with the task of assessing the effectiveness of the current tax system structure and to provide recommendations for changes to the General Assembly. The focus of the TRAC would be a complete comprehensive evaluation of the statewide tax code.