Haley insists SC can afford to cut taxes $1.8B yearly

The South Carolina Statehouse

COLUMBIA, S.C. — Gov. Nikki Haley insists South Carolina can afford her proposal to cut income taxes by $9 billion over the next decade without cutting spending.

The Republican governor said Friday the state can absorb that in surpluses as the state’s economy grows.

But looking back 10 years doesn’t support that outlook.

State economic advisers say her plan to cut the top income tax bracket by two percentage points would reduce revenue by $1.8 billion yearly once the 10-year phase-in is fully implemented. That represents 25 percent of the $6.9 billion spending proposal for next fiscal year that she released last week.

Haley makes her case looking at the last few years of post-Great Recession recovery.

Senate Minority Leader Nikki Setzler says the state is still digging out from deep, recession-era cuts.