Columbia, SC (WIS) – Some workers in South Carolina may not have to pay taxes on a significant part of their income if an invoice submitted to the State House becomes a law.
The “No Constrip Ton Tips” prosses started in the last presidential election and became a popular promise of President Donald Trump's campaign.
Now there is an effort to bring it to South Carolina.
“This draft law is simply stolen from Donald Trump's agenda,” said Senator Matt Leber, R – Charleston and the main sponsor of legislation.
The invoice would exclude money from tips from the individual income taxes from someone and tips as “discretionary payments that a customer receives from a customer who receives from the customer, including but not limited to cash tips that are received directly from the customer, and tips from a customer through electronic billing or payment.”
It has cross -party support in the Senate, and Leber said that it was a popular idea in his district of Lowcountry in the hospitality industry.
Leber said that people who rely on tips for their livelihood already pay little or no income taxes.
“I'm a Republican and I've never hit a tax cut that I don't like,” he said during a subcommittee for the Senate Ministry of Finance this week.
However, a tax effect on legislation showed that implementation could lead to an annual use of $ 14 million for state income.
“I was long enough here that we have targeted certain persons and sectors for tax cuts, and sometimes it is as if we are pressing a balloon: If you press it in one area, it will be exchanged on the other side and can shift the load to other people,” said Senator Tom Corbin, R – Greenville.
The invoice applies to everyone who receives tips not only to those who are specifically in the service or hospitality industry.
Corbin expressed some concerns about this broad language that opened the door for humans to use the tax exemption.
“If I did a job for a customer and this job would usually cost at 1,000 US dollars, I was friends with this customer and I said:” How about writing a check for $ 500 and giving me the other $ 500 “, I wouldn't have to pay any taxes on the other half?” Asked Corbin.
The senators said they planned to change this bill to a change in order to be accepted at a future meeting in order to clear up this concerns.
Similar laws were proposed at the federal level and in almost two dozen other states, including North Carolina and Georgia.
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