South Carolinians need to pay very close attention to the recommendations made by the Tax Realignment Committee.

The TRAC’s list of recommendations will eliminate exemptions on a long list of items that residents use every day – like food, water and electricity. Farmers will be hit hard which will translate into higher food costs for consumers. Non-profit organizations will have to pay taxes on items they sell to raise money. Those with medical needs will see their costs rising as exemptions are eliminated.

The $300 cap on vehicles will go away and be replaced with a higher tax rate.

Even the sales tax exemption on this newspaper could be eliminated.

To offset these exemptions, the committee is suggesting to reduce the current 5% sales tax and replace it with a new, lower tax.

We can already hear the rhetoric – “We aren’t putting on new taxes. We are just eliminating the exemptions that have been enjoyed by so many. And we are going to reduce your tax rate as well.”

What this means, if passed by the General Assembly, is that while the sales tax would be reduced, there are a whole lot more things being taxed. And as each of these items is taxed, the costs are passed on to consumers.

More money will be coming out of your pocketbook a penny, a dollar, or many dollars at a time when the economy is having a rough ride.

It is vital that taxpayers pay close attention to these recommendations and let our senators and representatives know just how severe these taxes will impact us individually.

Granted, the taxes will be non-discriminatory – the poor will pay more taxes on food, medicines and utilities just like the middle-class and the rich.

Just whocan stand the burden?

 


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