The South Carolina Republican Party, the state party of opportunity, supports a tax policy designed to help the economy grow, not stunt the taxpayer. We realize that free people maximizing the power of free markets will do more to enhance the wealth and economic security of South Carolinians than any government program ever could. We therefore support policies that allow hardworking South Carolinians to keep more of their own money rather than be given to the state.
A massive body of scholarly evidence shows economic growth is stimulated or retarded by the levels and kinds of state and local taxes. Capital is attracted where it is welcomed.
The Party recognizes that high property and income taxes repel capital migration and therefore retard economic growth. We strongly support the successful efforts of our Republican Governors and legislators, which have repeatedly reduced property taxes.
As we note that South Carolina’s income tax rate is higher than most of our neighboring states, and is almost the highest in the nation. The Party calls on the General Assembly to significantly reduce the tax burden on our economy and our taxpayers. We recognize the research of free market economists whose work has shown permanent decreases in marginal tax rates cause behavioral changes in taxpayers. This change in behavior stimulates the private sector economy and a result of increased economic activity, the public sector may realize increased tax revenues.
The Party calls on our Statehouse and Congressional delegations to stand firm in opposing new tax increases or the reversal of successful tax cuts. We also call on our Congressional delegation to do all they can to repeal the “death tax”, which is a burden to working families, businesspeople, and farmers in our state.
The Party clearly understands that capital gains taxes are particularly pernicious in discouraging new investment and job creation. Empirical data demonstrate that taxes are second only to labor costs as a consideration in new business location decisions. Studies also show progressive income taxes are economically more harmful than flat rate taxes raising the same amount of revenue. A growth- maximizing strategy calls for low taxes and a low proportion of expenditures going for growth-inhibiting transfer payments.
With regards to local taxing powers, the Party supports the original intent of Home Rule. While S. C. Republicans support the concept of local autonomy, we recognize that an acrossthe-board support for unlimited Home Rule could result in taxation without limitation, importing Washington-style tax-and-spend government to our local communities. We recognize the authority of local governments to collect taxes, but only for purposes, which have been authorized by the General Assembly.