House bill H.4228 would condense the middle income tax brackets while leaving the highest and lowest brackets essentially unchanged. This bill would eliminate the 3, 4, 5 and 6% tax brackets and replace them with a single tax bracket at 3.75% applying to all incomes between $2,910 and $14,550. Unchanged is the 0% rate for incomes below $2,910 and the 7% rate for incomes above $14,550.

While this would be a tax cut, the fact that the top marginal rate of 7% will still kick in at such a low amount ($14,550) ensures that the average household savings from such a cut will be minimal.

By South Carolina Policy Council

Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.