Will H.4216 Actually Lower your taxes?

South Carolina House Bill 4216 (H.4216), currently under review by the Senate Finance Committee, proposes sweeping changes to the state’s income tax structure. While it promises simplicity and lower rates, the bill also eliminates key deductions that many working families rely on. As citizens of Saluda County, we must understand what’s at stake—and make our voices heard.

🧾 What Is H.4216?

H.4216 is a tax reform bill that would:

• Replace South Carolina’s current graduated income tax brackets with a flat 3.99% tax rate for individuals, estates, and trusts.
• Eliminate adoption of the federal standard and itemized deductions, meaning South Carolina would no longer mirror federal deductions like mortgage interest, charitable giving, or medical expenses.
• Introduce a new South Carolina Income Adjusted Deduction (SCIAD), a state-specific deduction meant to replace the federal ones—but with fewer benefits for many middle-income households.

💡 How Could This Affect Saluda County?

While a flat tax rate may sound appealing, the broader impact depends on your income level and how you currently file:

• Families who itemize deductions—especially for mortgage interest, medical costs, or charitable giving—may lose significant tax relief.
• Retirees and fixed-income households could see higher tax bills if they rely on deductions that would no longer be recognized.
• Low- to moderate-income earners may not benefit from the flat rate if they lose more in deductions than they gain in rate reduction.
• The bill could reduce state revenue, potentially affecting funding for education, infrastructure, and public services that rural counties like ours depend on.

📣 Why Your Voice Matters

Saluda County’s rural character means our needs are often overlooked in statewide policy debates. But when we speak together, we are powerful.

• Call or write a postcard to your state senator and representative. Let them know how this bill could affect your family, your church, your school, or your small business.
• Ask them to protect deductions that matter to working families and retirees.
• Encourage them to slow down and study the long-term impact on rural counties like ours.

📝 Sample Postcard Message

Dear [Representative/Senator Name],

As a resident of Saluda County, I’m concerned about House Bill 4216. While I support fair taxation, eliminating federal deductions could hurt families like mine. Please protect the deductions we rely on and ensure rural communities aren’t left behind.

Sincerely,
[Your Name]
[Your Address]

🗺️ Who to Contact