COLUMBIA – The Senate Finance Committee has advanced a bill reducing taxes for small business owners.
The measure approved Wednesday would reduce the tax rate that small business owners pay on their profits from 5 percent to 3 percent over four years. Budget advisers estimate the measure would reduce state revenue by $15 million next year and $65 million annually when it is fully implemented.
Committee Chairman Hugh Leatherman says the tax cut is good policy. The Florence Republican says it will help “mom and pop” business owners whose spending adds to the state’s economy.
Officials think 60,000 small businesses will benefit from the tax cut. The House approved the bill two weeks ago.
The vote comes as the committee continues work on its state spending plan for the coming year.