South Carolina Lawmakers Advance Income Tax Phase-Out Bill

The South Carolina House of Representatives passed a bill Tuesday that sets in motion a plan to eventually eliminate the state’s personal income tax once certain revenue targets are met.

The bill (H 4216) from the Republican-led House would gradually combine the state’s three income-tax brackets to a flat rate of 1.99% as the state meets specific revenue thresholds. The measure would first create a two-bracket system that collects 1.99% on taxable income up to $30,000 and 5.39% on income beyond that.

The higher-rate tax would then be reduced to the flat 1.99% rate if revenue forecasts ...