As we wrote earlier, if South Carolina is going to successfully compete in the coronavirus-altered economy of the 2020s, then it must stop expensive and comrade capitalist offerings for big corporations and instead focus on creating a climate underlying business better.
Specifically, it must create a business climate that attracts middle and upper-income people who currently flee urban centers – in addition to those who are part of the emerging “work at home” movement.
Central to this effort? Reducing the Palmetto State’s anti-competitive tax burden – specifically its exorbitantly high individual income tax rate, which evaluates a seven percent tax on all income during $ 15,400.
This is the eleventh highest rate in the country – and the highest in the southeast.
South Carolina also needs to reduce the tax burden on sales and property.
In addition to being a magnet for these workers, strategic tax cuts will also promote entrepreneurship and small business expansion … assuming the elected President of the USA Joe Biden it doesn’t close the country.
Anyway … the other critical reform that South Carolina must undertake to compete for these jobs is to impose some market-based responsibility on its worst school system administered by the country’s government.
After all … people will not want to live and work in a place with high taxes and bad schools, right? No. Especially when studies show that these high taxes are being driven in large part by perpetual increases in funding for these low-quality schools.
Going to 2021, there is a total of 783,000 students from the chronically bankrupt educational system of the South Carolina government – with taxpayers spending $ 14,227 per student, per year.
That is $ 11.2 billion … every year, every year.
In addition, this total not includes “education” money spent in connection with local bond referenda … nor does it include the $ 1.53 billion in unrestricted reserve money, South Carolina’s school districts are currently seated (a number that has gone up almost $ 200 million previous year).
Furthermore, it does not count the estimate $ 330 million in federal “stimulus” money targeted at government-run schools (with more on the way).
A reform that seems to be gaining momentum? Education savings accounts – or ESAs. Under these proposals, parents can purchase education-related products and services for their children using part of the resources earmarked for them in the state funding formula per student.
“This allows families with more modest incomes to have access to more and diverse educational options for their children,” noted the EdChoice.org website.
ESAs were the focus of a guest column published in our news media in February 2019 by Jonathan Butcher from the Heritage Foundation. According to Butcher – who lives in Greenville, SC – the reports allow parents to take a more active role in adapting academic experiences that meet their children’s individual needs.
“Parents can pay for textbooks, educational therapy, tuition from private schools and personal tutors – to name a few possible uses,” wrote Butcher. “Parents can use an account to personalize their children’s learning experience.”
The flexibility offered by these reports “changes lives”, according to Butcher. It can also change the game for Palmetto State’s struggling government system – which has clearly failed to reform, despite tens of millions of dollars injected into government “accountability” efforts each year.
So far, only five states – Arizona, Florida, Mississippi, Nevada and Tennessee – have adopted ESAs. And the rules governing eligibility, funding limits, permitted uses and reporting requirements vary considerably from state to state.
Our guess is that South Carolina – where Republican politicians routinely chicken out at the demands of the government-controlled system – will adopt the least choice.
Assuming an account is approved …
According to our sources, however, there is strong support for an ESA bill in the SC House of Representatives – where “Republicans” enjoy a commanding position 81-43 advantage over Democrats. This means that the issue could become an initial test for the new “conservative” majority in the Senate of SC, where “Republicans” enjoy a 30-16 Border.
Of course, as we have seen, the GOP rule in the state of Palmetto is not all that is advertised as being …
Either way, stay tuned for a follow-up post on South Carolina’s 2021 ESA push – as well as an update on pro-school legislators’ ongoing efforts to advance other pro-market reforms aimed at boosting academic results in the state of Palmetto.
Again, along with tax cuts, this is one of the most important things state legislators can do in the next legislative session to increase South Carolina’s overall competitiveness in the new economy …
-FITSNews
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