The current tax code is simply not equitable; nor is it efficient. By restructuring the South Carolina tax code, we can lower tax rates and still increase tax revenues.
Eliminating loopholes and special exemptions in the tax code would actually increase revenues, also permitting lower tax rates. For example, South Carolina collects $1.2 billion in sales tax annually, while granting exemptions of $1.6 billion to special interest groups. The legislature should eliminate all exemptions except for the most fundamental necessities, e.g. food and medication. This alone would essentially double the revenue from sales taxes.
More efficient government will enable lower tax rates. Lower rates will attract the new businesses we need to generate economic growth. A broader business tax base will reduce the burden on homeowners. And finally, a more balanced and equitable tax structure – devoid of exemptions for special interests – will generate greater tax revenues at lower rates.
