Tax Realignment Commission recommends increasing tax base

The state Taxation Realignment Commission (TRAC) says South Carolina needs to increase its tax base, saying that more than 40 percent of South Carolinians do not pay taxes. One of its proposals is to charge a fee for anyone filing their taxes. The fee would depend on the filer’s income. For those making between $5,000 and $50,000, the fee would be $25; between $50,000 and $100,000 brings a $50 fee; and more than that would be $75.

The commission also proposed eliminating tax breaks on worker’s compensation and lowering the exclusion rate on capital gains. Right now 44 percent of capital gains are free from taxes. The commision wants to lower it to 20 percent.

TRAC was created last year to examine the state’s tax structure and recommend changes. The General Assembly will consider their recommendations in the next session.