As part of his proposal to attract more out-of-state businesses and encourage job growth, Gov. Mark Sanford last week announced a series of proposed tax changes that are expected to be revenue neutral and are not likely to affect South Carolina’s credit rating, according to an economist.

Sanford said his plan would phase out the current 5% corporate income tax over the next 10 years and would be offset by eliminating most corporate tax exemptions and other incentives. He also proposed changing the graduated personal income tax rate to an optional flat rate of 3.65%.

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