We have to make South Carolina a good place to own a business; that means reforming our tax code – beginning with eliminating the small business income tax – so it is flatter and fairer and no longer places so much of the burden on the small businesses that drive our economy. South Carolina Fair Tax Act will encourage economic activity; lower, flatten taxes rates. South Carolina taxes payers will be able to keep more of the money they earn and it will keep the tax structure stable so that investor and entrepreneurs are confronted with constantly shifting tax rules. The Fair Tax Act simplifies the tax system; lower tax rates so that taxation becomes an instrument for promoting economic growth.

Dr. Samuel Rivers
House District 15 Candidate (Berkeley, Charleston)

Gov. Haley was right in saying that our state income tax makes it
tougher to recruit and keep businesses – and jobs. The Tax Foundation
recently ranked South Carolina 36th in Business Tax Climate. Eight of
the Top 10 states have no personal income tax.

The South Carolina FairTax Act (H-3993/S-274) would eliminate our 7%
personal income tax (12th highest in the nation) and 5% corporate
income tax on a revenue neutral basis by removing the myriad
exemptions in our sales tax code. It would keep our state sales tax
rate at 6% and would not impact property taxes.

The legislation has 67 co-sponsors in the House, including Speaker
Bobby Harrell and most members of the Charleston, Berkeley and
Dorchester County Delegations. The identical Senate version has 16
co-sponsors, including Senators Glenn McConnell, Larry Grooms, Mike
Rose, Chip Campsen, Paul Campbell and Ray Cleary.

The key element of the legislation is that it increases take-home pay,
which will propel the consumer spending which drives 70% of our
economy. Under the South Carolina FairTax Act, a family of four with
$55,000 in taxable income would take home $428 more each month.

Economists Art Laffer and Stephen Moore wrote in “Rich States, Poor
States”, an analysis of all state tax policies compiled for the
American Legislative Exchange Council, “It’s clear that income taxes
have a decidedly negative impact on growth – we say with confidence
that eliminating the income tax will improve a state’s economic lot.”

With perpetual double-digit unemployment, the South Carolina economy
needs a pro-growth paradigm shift!

From: Larry Richardson

Candidate for SC House District 68

I want to publicly announce that I intend to add my name as a co-sponsor to the South Carolina Fair Tax Bill at the first opportunity I have to do so if elected to the SC House. I have long believed that the current situation of forcing every business in the state to play the roll of Tax Collector (They must add to the cost of their goods and services in order to ‘pay’ the many taxes that come in many forms, fees, permits, property taxes, etc.). If they were not charged all of these taxes in the first place they would be able to reduce the cost of their product, and would not have the added expense of having to do all the paperwork on keeping track of all of the fees, dues and taxes owed. The Fair Tax would allow for a simple one-time ‘collection’ mechanism, and a simple one time submission to the state per tax period. Besides making the burden of paperwork and accounting requirements much easier to cope with, the elimination of keeping track of all of the various forms of ‘taxing’ businesses would make moving a business to South Carolina a no-brainer. I think any business looking to expand and grow would clamor to locate in South Carolina if the ‘tax nightmare’ placed on them was eliminated. The elimination of withholding state income tax from employees paychecks would also be a great asset to every worker in South Carolina. There are many other aspects of the Fair Tax that makes it the most logical system to replace the current unsustainable tax system with, however I think the elimination of taxes on Businesses is the single most advantageous part of the Fair Tax, especially considering the fact that in reality BUSINESSES DO NOT PAY TAXES, they simply pass on the cost to their customers. I invite every patriotic citizen in South Carolina to help me get the word to every member of the South Carolina Legislature – FAIR TAX NOW!

SC Senate District 35 (Sumter) candidate Eddie Drayton released the following statement in support of the South Carolina FairTax Act: It’s time in South Carolina to act on legislation that impacts not only the way we pay taxes, but also the way we do business. When comprehensive tax reform becomes the focus in the next general session let us declare that business as usual is dead and opportunity becomes reality. We as South Carolinians should begin to think outside the box and consider new ideas that will put us to the forefront of job creation. Exciting things are beginning to happen in South Carolina. South Carolinians are starting to lead the nation in innovative ideas for fairness to all taxpayers.We need to be competitive not only with neighboring states from a manufacturing standpoint, but also in how we treat our fellow South Carolinians. Fairtax is fair for South Carolina, but more importantly, it is fair for South Carolinians. Eddie Drayton, Candidate for SC Senate district 35.

MURRELLS INLET – - Republican State House District 108 candidate Stephen Goldfinch Monday joined Gov. Nikki Haley, Speaker Bobby Harrell, state Treasurer Curtis Loftis, and eighty state legislators and endorsed the S.C. Fair Tax Act, which would eliminate the state income tax on individuals and businesses.

“One of the best things we can do to create jobs in South Carolina is to eliminate the state income tax, especially on businesses through the S.C. Fair Tax Act. It will make South Carolina much more competitive in attracting businesses to the state, help existing small businesses, provide needed simplification of the state tax code, and broaden the tax base,” Goldfinch said.

“If elected, taxpayers in Georgetown and Charleston counties can count on my full support for the Fair Tax Act.”

“The S.C. Fair Tax organization is excited that Stephen Goldfinch is making the S.C. Fair Tax a vital part of his campaign platform. If elected, he would join sixty-five House co-sponsors on the Fair Tax Act,” said John Steinberger, spokesman for S.C. Fair Tax.

“South Carolina has suffered through three years of high unemployment in the 10 percent range. Many small businesses have either closed, reduced payroll, or seen significant declines in profits during those years. By eliminating the state income tax on businesses and individuals, the S.C. Fair Tax will lead to a resurgence for our small businesses, which account for 80 percent of new jobs created.”

The S.C. Fair Tax legislation would end the taxation of business profits and the earnings and income of state workers. The state income tax would be replaced by a 6 percent state sales tax collected only on new goods and services at the point of retail sale. Businesses selling goods to other businesses for the production of goods or services and used goods would not be taxed.

This month Goldfinch also signed the Americans for Tax Reform Taxpayer Protection Pledge that he will oppose any tax increases if elected.

Goldfinch is a Murrells Inlet attorney and entrepreneur.

His campaign website is SC4Goldfinch.com

Republican Rep. Kevin Ryan, who defeated 14-year incumbent Democrat Vida Miller in 2010 for the seat, is not seeking reelection this year.

South Carolina Senate candidates Deedee Vaughters and Katrina Shealy recently endorsed the South Carolina FairTax Act (H-3993/S-274), the plan to eliminate the state income tax.

Vaughters is challenging Sen. Nikki Setzler (D-West Columbia) in Nov. 2012 in Senate District 26, which spans from Aiken to West Columbia. She recently wrote in the Aiken Standard, “Almost half of all South Carolinians pay no tax other than sales tax. That shifts the burden over to the other half of us that foot the bill. The FairTax would be an excellent way to remedy this situation!”

Shealy is challenging Sen. Jake Knotts (R-West Columbia) in the June 2012 GOP primary in Senate District 23, which includes Lexington and most of Lexington County.

“The South Carolina FairTax Plan,” writes Mrs. Shealy, “eliminates State Income Taxes for individuals and businesses, saving us $1000′s! It is a point of sale tax and treats everyone the same “Fair”. It provides the same amount of revenue to our state government as our current tax code.

“The FairTax plan lets everyone share the tax burden equally. It also untaxes the poor and gives more disposable income to the middle class. This is the only Real Plan that works!”

The South Carolina FairTax Act currently has 65 sponsors in the House and 16 in the Senate. Rep. Joshua Putnam (R-Anderson) and Rep. Eddie Southard (R-Moncks Corner) both won special elections in 2011 and have pledged to join the House bill.

The South Carolina House of Representatives has promised to make tax reform a top priority when the General Assembly reconvenes Tues., Jan. 10. To re-inforce that Representatives make the South Carolina FairTax Act (H-3993) its tax reform plan, SC FairTax will launch a radio advertising campaign in January.

The first 60 second ads will run early in 2012 on the program On The Radio With Bill Frady. The show airs Mon. – Fri. from 7-10 am on WOIC (AM-1250) in Columbia. In addition to a large audience in our State Capital, On The Radio has a large statewide internet audience at www.stikam.com/OTRWithBillFrady.

If you would like to help expand the radio campaign in support of the South Carolina FairTax Act, please go to www.scfairtax.org/how-you-can-help/. A small contribution today can help you save thousands in state income taxes each year!

South Carolina faces an estimated $13-17 Billion shortfall in its 5 State Employee Retirement Systems, which include state agency workers, teachers, police, firefighters, judges, legislators and National Guard soldiers.

The House Ways and Means Committee Retirement System Study Committee is considering requiring the state’s 141,000 employees to contribute more toward their retirement benefits. State employees currently have 6.5% of their salaries withheld for retirement benefits.

Consulting firm Cavenaugh Macdonald issued a February report recommending an increase in state employee retirement contributions of about 1% to close the shortfall. Several groups representing state employees voiced opposition to the proposed contribution increase.

The South Carolina FairTax Act (H-3993/S-274) provides a solution to this impasse. By eliminating the 7% state personal income tax, state employees could contribute more toward their retirement benefits and still realize an increase in take-home pay.

The House Ways and Means Committee Retirement System Study Committee meets Tues., Nov. 29 at 11:30 in Blatt Building Room 521 to discuss legislative solutions for the shortfall. Please contact Chairman Jim Merrill at JimMerrill@schouse.gov and House Majority Leader Kenny Bingham at KennyBingham@schouse.gov and recommend the South Carolina FairTax Act as the best legislative solution for the projected State Retirement System shortfall.

Scarecrow on the Square

We are proud to announce that SC FairTax has been awarded FIRST PLACE in the Civic Division for the “Scarecrows on the Square” exhibit on display in Summerville in Hutchinson Square. The decision making process was tabulated by observers who liked the display so much they were willing to donate their hard earned after tax dollar in order to support their favorite display. For a $5 contribution the display was awarded 20 votes!!!

This event was hosted by the Junior Service League in order to raise money to pay for school supplies for Dorch. 2 school district.

We are excited about receiving this honor and now if we could just scare up some legislators to get out the VOTE for SCFairTax Act then we will REALLY be in the spirit of the season!!

Happy Thanksgiving and be blessed in this holiday season.

A group called South Carolina FairTax sponsored the recent RedState gathering in Charleston. The group is in the vanguard of the so-called Fair Tax movement, advocating on the state level what has been discussed on the federal level for many years.

South Carolina state rep Bill Taylor addressed the RedState gathering to explain the advantages of a Fair Tax system.

Fair Tax will eliminate current tax collection systems and agencies. It will replace them with streamlined collection systems under which citizens automatically pay taxes when they purchase goods or services, like a state sales tax.

On the federal level, a Fair Tax would require imposition of a new federal sales tax on all goods and services while eliminating current income taxes, the current collection system and the Internal Revenue Service (IRS) itself. This will do away with the costly and complicated burden of filing tax returns and sometimes being audited, along with the $11+ billion cost of operating the IRS itself.

Nine state senators are sponsoring the South Carolina Fair Tax legislation which will eliminate present state income taxes and sales taxes and will have the following advantages according to www.scfairtax.org

‘It eliminates state income taxes on households and businesses, saving them thousands $$$. It includes a monthly Prebate check which pays for sales expenses for groceries, medicine, etc.  It only taxes new retail goods and services at the point of sale. It simplifies our state tax code and eliminates the SC 1040 income tax form. It treats all taxpayers and businesses the same. It provides a 6% base sales tax which brings in the same amount of money for the State government as our current tax code.’

The fact that the South Carolina group is working on the state level truly is a revolution. South Carolina is certain to institute a Fair Tax long before the federal government.

American Democrats and liberals oppose the Fair Tax on any level because the present system is yet another bureaucratic imposition on productive Americans under which the political left uses the IRS and state agencies as tools of control, intimidation and harassment, and to keep public-sector workers employed on the public dime.

Why a Fair Tax? In a word, simplicity. First, most people who actually pay taxes already are working hard. Second, the existing tax filing system is an additional imposition on their busy lives. So third, imagine that hard-working citizens never had to fill out another tax form. That certainly sounds like a good idea.

According to the Heritage Foundation in 2007, based on figures from The Tax Foundation:

‘All taxpayers, not just small businesses, face rising compliance costs. Americans spent billions of hours and an estimated $279 billion filling out their federal income taxes last year alone.’

That’s $279 billion… Not in taxes but just in lost personal time and direct money outlays to pay the preparers, accountants and lawyers. In other words, it costs you more and more money just to pay more and more in taxes. Imagine what $279 billion and all that personal time could do to spur economic growth if it were directed toward investment in new businesses rather than to lawyers and accountants and tax calculations.

In another fact from the Tax Foundation:

‘The full cost a tax system is more than the amount of tax paid. It also includes the cost of tax planning and paperwork. Economists call these “tax compliance” costs, and the IRS estimates Americans spend 6.6 billion hours per year filling out tax forms—including 1.6 billion hours on the 1040 form alone. In 2002 Americans spent roughly $194 billion dollars on tax compliance. That amounts to 20 cents of compliance cost for every dollar collected by the tax system.’

Thus SC FairTax is part of a global trend toward tax simplification that is proving to be highly beneficial to economic growth. Even Russia now has a flat tax – one simple rate on your income with no deductions and no paperwork – which is another way to eliminate the existing system.

The South Carolina Groups prefers a Fair Tax system, saying that it has the following advantages:

*Your take-home pay will increase immediately after the FairTax Act becomes effective as taxes are no longer withheld from your paycheck. You no longer have to keep records or fill out and file incomprehensible tax forms. Best of all, as the business climate improves dramatically and there is more competition for good employees, your value to your employer increases and your wages increase accordingly.

*The South Carolina FairTax will work because it applies sales taxes to all NEW retail goods and services. It becomes a consumer tax, not a production tax, therefore people are only taxed on items they purchase not on products they manufacture. This will greatly draw businesses to South Carolina. The amazing thing about SCFairTax is that it is NOT NEW. Every component has already been successfully employed in one state or another, and on occasions some have been partially implemented nationally. What makes the SCFairTax proposal unique is that it is the first time all of these great ideas will be implemented at the same time.

*We already have a flat state income tax. Anyone with a full-time job pays the top 7% rate. The South Carolina FairTax Act ends taxation on income for all households and businesses. The FairTax taxes consumption so there is no need to file a tax return. The flat tax taxes income. In 1986, the tax code was revised to contain just two tax brackets. There have been well over 16,000 changes to the tax code since then. It is time we take back the power of authority in “We the People”.

*The prebate is a monthly payment which covers all sales tax expenses on retail spending up to the poverty level. This means a lawful family of 4 would have to spend more than $2400 per month on retail goods and services before they ever paid a penny in sales tax! The amount of the prebate is based on household size. The prebate completely untaxes the poor and increases disposable income for the middle class.

In addition, says the website, the Fair Tax system:

Empowers families to keep thousands more of their money. Increases consumer spending, which drives 70% of our economy. Removes state income and sales taxes from South Carolina businesses, enabling them to expand and hire. Incentives for entrepreneurs and wealthy retirees to relocate to South Carolina, leading to increased home sales and job growth. Monthly Family Consumption Allowance or Prebate untaxes the poor and increases disposable income for the middle class. The ‘prebate’ pays for the sales taxes on the first $2400 in retail spending for a family of 4.