Times Examiner Facebook Logo

Thursday, February 13, 2025 - 10:29 AM

INDEPENDENT CONSERVATIVE VOICE OF UPSTATE SOUTH CAROLINA FOR 30+ YRS

First Published & Printed in 1994

INDEPENDENT CONSERVATIVE VOICE OF
UPSTATE SOUTH CAROLINA FOR OVER 30 YEARS!

McMastesr priorities Reduced taxes school choice civil liability reform

In his eighth State of the State Address on Wednesday before the S.C. General Assembly, Gov. Henry McMaster outlined his priorities as South Carolina’s longest-serving governor, including lowering the income tax rate further, reforming civil liability laws and improving school choice opportunities.

The Republican governor, who took over for Gov. Nikki Haley in 2017 and whose current term ends in January 2027, proposed accelerating the cut in the state’s personal income tax rate from 6.2% to 6%, which he noted would allow taxpayers to “keep an additional $193.5 million of their hard-earned money instead of sending it to state government.”

McMaster in 2022 signed a law dropping the rate from 7% to 6% over five years, lowering it initially to 6.5%, with planned 0.1% reductions in each of the following years, contingent upon projected general-fund revenue targets.

“Our booming economy has created annual budget surpluses that have allowed us to accelerate these tax cuts faster than anticipated,” McMaster said during his speech.

“However, we should not stop at 6%,” he continued. “We should keep cutting as much and as fast as we can until we can eliminate the personal income tax altogether.”

States without an income tax include Florida, Tennessee and Texas.

McMaster also pointed out that while the state’s economy is strong, South Carolina’s joint-and-several liability rules have “introduced an element of uncertainty,” adding that “uncertainty is the enemy of prosperity.”

As The Nerve first explored in 2022, critics contend the state law, which was last amended in 2005, is unfair to businesses named as defendants in lawsuits because they can be required to pay entire verdicts if they were far less than responsible for the alleged wrongs. Under the law, a listed defendant with at least 50% responsibility can be required to pay all awarded damages.

And in cases involving alcohol, a defendant with just 1% responsibility could be required to pay the entire verdict, legal observers say.

“Individual and businesses, both large and small, are becoming unduly penalized for the actions of others – too often through crippling financial judgments and skyrocketing insurance premiums,” McMaster said Wednesday.

“I ask the General Assembly to find a commonsense solution,” he continued, “one that will provide accountability, certainty, and just compensation – without damaging our economy. And one that I can sign into law the minute it reaches my desk.”

On the education front, among other proposals, McMaster, noting that “educating our children is the most important thing we do,” asked lawmakers to “send to my desk, as soon as possible,” a new school-choice bill that “addresses last year’s State Supreme Court decision.”

The high court last September in a 3-2 vote ruled that a school-choice law that would have allowed state funds to be used for scholarships for students to attend private schools violated the S.C. Constitution’s prohibition of using public funds for the “direct benefit” of private educational institutions.

McMaster specifically called on lawmakers to pass a “new Education Scholarship Trust Fund bill.”

“Parents, not school attendance lines, should determine the education that best suits their children’s unique needs,” he said.

McMaster proposed that $30 million be appropriated to the trust fund, which he said would allow low-income parents to “continue choosing the type of education environment and instruction that best suits their child’s unique needs.”

The S.C. Senate on Thursday gave key approval to a bill that would use lottery proceeds for scholarships for up to 10,000 students in low- and middle-class families to attend private schools in the 2025-26 school year, with the enrollment cap raised to 15,000 students in the 2026-27 school year. The legislation will go to the House for its consideration.

The South Carolina Policy Council – the parent organization of The Nerve – published an analysis today on the bill.

“The SCPC is encouraged by the Governor's position on joint and several liability, the lowering of the state income tax, and the need for universal school choice,” said Michael Burris, SCPC’s CEO. “All of these policies would result in a more prosperous South Carolina.”

Brundrett is the news editor of The Nerve (www.thenerve.org). Contact him at 803-394-8273 or This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow The Nerve on Facebook, Instagram and X (formerlyTwitter) @thenervesc.