Swapping an Income Tax Decrease for a Gas Tax Increase
S.27 would reduce the tax rate for all state income tax brackets by 2 percent over 10 years in exchange for an increase in the gas tax from 16 to 36 cents over the same time period. Put simply, South Carolina needs tax cuts not tax swaps. The only acceptable form of this strategy would be reducing general tax rates after eliminating special targeted tax favors (a form of cronyism).
This bill is intended to increase transportation funding, but as we’ve said before current funding levels aren’t the issue with transportation; its misplaced priorities and a nonsensical management structure at DOT. Even if we granted more funding was needed for DOT, the legislature should look at transferring existing funds spent on questionable programs rather than attempting to increase revenues.