SC Tax Commission Recommends Commonsense Corporate Tax Reforms
Lawmakers coming to Raleigh next week would do well to read over portions of the final report issued by South Carolina’s Tax Realignment Commission (TRAC) last month. Despite counterproductive campaign promises from Governor Haley to eliminate the state’s corporate income tax (which the Center on Budget and Policy Priorities shows is more likely to harm the state’s economy than it is to create jobs) , TRAC recommended taking steps to improve the state’s corporate income tax by switching from “separate reporting” to “mandatory combined reporting” for multi-state corporations and eliminating ineffective and costly corporate tax giveaways:
Combined reporting is a way to avoid discrimination against certain businesses, to tax income that would otherwise be shifted out of state, and to deal with the growing complexities of the current corporate climate.
TRAC also expresses concern over the growing magnitude of corporate tax credits, particularly the massive amount of credits that are carried forward each year…
Even if Governor Haley fails to take up the recommendations of her state’s tax commission, let’s hope that legislators leaders north of the state’s border are paying attention.