On Nov. 29, the SC House Tax Policy Review Committee held its seventh meeting. At this meeting staff presented a new model of state income tax. The current State Income tax provides for several tiers of taxpayers depending on level of income.
The model presented at the meeting would be based on a flat tax concept of 5 percent on all levels of income. The model would eliminate all itemized and standard tax deductions. It would utilize the federal adjusted gross income (FAGI) as the starting point. Filing categories or family status (single, married, head of household, qualifying widow(er) with dependent child) would remain the same. The flat tax model would increase taxes for those folks in the income range of $20,000-$80,000 by an average of $85 per year. We also discussed North Carolina’s flat tax.
North Carolina allows some standard state deductions and it was noted the amounts are less than the allowed deductions on federal returns. North Carolina’s law also has caps on some of the deductions. There was some discussion about adding back a few deductions but limiting taxpayers to two itemized deductions for which they qualify. Again, please note that the Tax Policy Review Committee’s primary task was to not raise taxes, but to propose a model that would flatten, stabilize and broaden the muddled SC Tax Code that would be fair to all taxpayers.
In addition to the tax discussion, the committee was provided a short briefing from the labor, commerce and industry House staff on the possibility of changes to business license fee collections. More information is to be provided at later meetings on this endeavor. There was insufficient time to continue with discussion of sales and use tax exemptions. The committee will not meet again until after the 2017 Legislative Session begins on Jan. 10.
I have also been assigned by House Speaker Jay Lucas to serve on the Joint Legislative Committee to Study Services, Programs and Facilities for Aging. My first meeting on this Committee was Nov. 30. We heard comments from numerous advocacy groups for seniors and aging population in SC such as members from the SC Silver Haired Legislature, Justine Gradillas of the Office of Health & Human Services Research, Coretta Bedsole of AARP, and Mark Smith of the SC Advisory Council on Aging. The SC Silver Haired Legislature was established in 1999 and now has 186 members from all counties of the State with its primary purpose to identify Senior/Aging issues and offer recommendations to the governor, general assembly, etc.
Priorities provided by the SC Silver Haired Legislature are: 1) Providing Respite for Family Caregivers; 2) Funding (recurring dollars) for funding in-home and community-based services; and 3) Restoring Geriatric Loan Forgiveness funding. It was very apparent from all of the speakers that we, the state and general assembly have not been providing sufficient attention to the issues and concerns of our rapidly increasing aging population.
In an attempt to cut costs and better communicate with you, please let me know if you would like to receive my newsletters electronically. My email address is: joe@joedaning.com . Additionally, it will be easier for you to contact me with an email. If I can ever be of assistance to you, or if you have ideas regarding issues you want me to share with the rest of the general assembly, please do not hesitate to contact me or email me. I value your input on matters that affect Berkeley County and South Carolina.
Rep. Joe Daning, R-Goose Creek, represents Dist. 92 in the South Carolina House of Representatives. Contact him at 803-734-2951 or joe@joedaning.com.
