Comprehensive Tax Reform Passes Senate

Since the legislative session began back in January, I talked with many of you who thought it was time to take a serious look at the state's tax system. I have been working on a bill that would review the entire tax code of South Carolina to make recommendations to overhaul the system, in order to bring about strong economic growth. And after much debate, the Tax Realignment Commission (TRAC) plan passed the Senate earlier this afternoon.

During these very tough economic times, problems continue to rock the nation. South Carolina continues to be hit especially hard as we now have the third highest unemployment rate in the nation at 9.5 percent. Many are blaming South Carolina's antiquated and piecemealed tax structure as the primary cause of our state's woes. Called "loophole-riddled" and a "special-interest driven tax system" by The State newspaper, the tax code is an obstruction to economic growth in South Carolina.

The plan, which I introduced in the Senate, is modeled after the federal BRACC program. In an attempt to overhaul the tax code while removing the political pressures from the process, an independent commission of financial and economic experts will be created to assess the effectiveness of the current tax system structure and to provide recommendations for changes to the General Assembly. This plan will alleviate the concerns of politics dictating tax policy.

I am very pleased with the passage of the TRAC legislation today by the Senate. I thank the members of the Senate for a healthy debate and for passage of the bill. I believe that the creation of this commission is the best way for South Carolina to re-vamp our outdated tax laws. We must take a serious look at how our tax code works and this commission will be the most effective way for us to do that, as we seek to achieve fairness, equity and efficiency in our tax code.

Once again, if I can ever be of any assistance to you, please do not hesitate to contact me.


Sen. Hugh K. Leatherman
South Carolina Senator
District 31, Florence and Darlington Counties

S.C. Senate Begins Legislative Session

From Sen. Hugh Leatherman

Today at noon, the regular session of the 118th General Assembly of South Carolina will convene. We have many important issues facing our state, but we will work together, Republican and Democrat alike, to pass legislation that will improve the lives of South Carolinians.

I urge you to stay involved with the legislative process. As your elected state senator, I depend on hearing your thoughts, ideas and concerns. And the more that I know about the different issues facing you, the better opportunity that we will have to work together to improve as a community. After all, I am in Columbia for one reason – to represent the families of the Pee Dee region.

One issue that I have heard from many of you about and one that I have dedicated a lot of time to during the interim is the reformation of the state’s tax code. Earlier last month, I prefiled legislation that creates an 11 member commission, comprised of individuals who have extensive experience with public finance, tax administration, economics and tax law.

The South Carolina Taxation Realignment Commission (TRAC) will fully investigate the current effectiveness of the current tax system’s structure, as well as looking at the impacts of any proposed changes effecting tax revenues, while examining the assessment of state taxes currently levied. In addition, the TRAC will look at sales tax exemptions to examine which need to be retained, modified or repealed.

It is my hope the work of this commission will bring forth recommendations of a more understandable and user friendly tax system for our state.

Once again, if I can ever be of any assistance to you, please do not hesitate to contact me.