Last week, the South Carolina Board of Economic Advisors (BEA) increased the state’s revenue estimates by an additional $4.628 billion in forecasted recurring and nonrecurring revenues for the 2021-2022 and 2022-2023 fiscal years.
The increase is due to three major tax categories being above normal ranges: Sales, Individual Income, and Corporate Income Tax. The BEA’s announcement gives the Legislature more flexibility in crafting the government’s budget.
Frank Rainwater, executive director of the state Revenue and Fiscal Affairs Office, said the state is going through unusual growth rates and expects the economy to level off at some point.
This better-than-anticipated economic news encouraged Governor McMaster and other Republican leaders to propose further tax cuts.