NFIB, the main organization of defense of small businesses in the country, on May 7, 2025, Hailed the House of Representatives of South Carolina for having adopted a tax reform bill which lays the basics of a simpler and more equitable tax code – and a potential path to a tax rate of 0%.
The Bill of Chamber 4216, adopted this week, reduces the number of tax tranches from three to two, establishing a rate of 1.99% on income up to $ 30,000 and a rate of 5.39% over income higher than this threshold.
The measure also establishes a long -term route to reduction and potentially eliminate the income tax rate over time as state income increases.
“It is a strong signal of the chamber that they are serious about the pro-growth tax reform,” said NFIB state director Ben Homeyer. “The owners of small businesses have requested a simpler system that allows them to reinvest in their activities, and House Bill 4216 is a major step in this direction.”
The NFIB has credited the management of the Chamber, in particular President Bruce Banister and the representative Brandon Newton, for defending the measure and maintaining the priorities of small businesses before and at the center during tax negotiations.
The bill also maintains deductions for social security and military retirement income, helping to guarantee that retirees and workers families continue to benefit from key exemptions.
In addition, officials said that the updated reservoir tables should reduce the history of the state of the Southern Carolina workers' pay checks.
The Senate should consider similar tax reform legislation during the 2026 session.
“We applaud the house for having boldly moved and responsible for rationalizing the tax code of Southern Carolina,” said Homeyer. “This reform is not only a good policy – it is a deposit on a more competitive future and focused on opportunities for our state.”
