Each January, it is the custom for the South Carolina Speaker of the House to give a presentation on the state’s current political status at the First Monday luncheon, held at the Poinsett Club in downtown Greenville.

Speaker Murrell Smith began his report on January 5th with the statement that “South Carolina is winning – and not by accident.  Our success is the result of years and years of disciplined, conservative leadership.  We have planted the seeds, we have stayed focused on the fundamentals, and today, South Carolina is one of the strongest, fastest growing, most prosperous states in America.”

He then went on to quote a few statistics.

South Carolina’s Gross Domestic Product (GDP) grew 4.5% in the first quarter of 2025 – the fastest in the entire country.

Employment in 2025 increased by 72,000 new jobs, an increase of more than 3%.  

Since 2017, there has been more than $44.7 billion in capital investment, and 92,000 new jobs.  

We continue to have the 5th lowest property taxes in the U.S.

The result is that companies are moving here, people are moving here, and our workforce is increasing.  

South Carolina is outpacing the national economy, while building a foundation for long-term prosperity.

This success came from decades of conservative leadership – notably from the House Republican Caucus – which has laid the groundwork:  a strong economy, limited government, and a top-notch business climate.

The Speaker went on to cover several major areas of activity in 2025.

South Carolina’s Income Tax

South Carolina is competing against neighboring states, which have lowered or eliminated income tax.  But other states then raised other taxes, such as a gas tax.  We do not want to follow that.

The speaker spoke about a creating a path to eliminating income tax.  Currently, the S.C. income tax is the highest in the Southeast, but 46% of SC wage earners pay no income tax - not a fair tax system.  Everybody has to pay something.  SC needs to have a flat rate, and not a progressive rate. 

The first step was to reduce the top rate from 6.2% down to 5.39%.  The long-term roadmap is to reach a 1.99% flat rate, and to ultimately eliminate the state’s income tax.

The S.C. House passed that bill and it now in the S.C. Senate.

Georgia’s tax rate is below three percent and North Carolina’s is below five percent.  So taking action is a high priority.  

A people-first budget effort provides overall $1 billion of tax relief.  

$290 million in new income tax cuts have been made.  

The income tax rate has been lowered from 7% to 6%. 

Regulations

South Carolina has 82,000 regulations.  They have never been reviewed, they have never been sunsetted, they live in perpetuity.  The House is now reviewing those regulations and putting sunset laws into effect so they have to be periodically reviewed.  

Changes include eliminating outdated rules, preventing unelected bureaucrats from imposing new regulations without legislative oversight, and give entrepreneurs a predictable and fair regulatory environment.

As President Trump has done, we will be doing the same.  That bill passed the House almost unanimously, and is now in the Senate.

Energy Security

The Speaker pointed out that an Artificial Intelligence (“AI”) arms race between the U.S. and China exists, which we have to win.  To accomplish that, we have to build the infrastructure – like the railroads in the 1800s, and the Interstate system in the 1950s, now we must create more power generation.  We must make the electric grid more secure, more reliable, and generate more power, while staying affordable for families and businesses.  The State’s electric companies are making upgrades; bids have been solicited to restart construction of the nuclear reactor.

Education

School choice continues to be expanded.  About 85% of families in the State will have access to Education Scholarship Trust Funds by 2027.  

That empowers parents to make decisions about their children, not due to where they live, nor by the government.

Starting teacher pay is now $48,500 – higher than Georgia and North Carolina.

No change in college tuition for in-state students; $340 million in scholarships and tuition assistance.

Removing DEI

South Carolina became the first state in America to codify President Trump’s executive order banning “Diversity, Equity, Inclusion” (DEI) practices.  

The end of DEI eliminates race- and gender-based preferences, restores merit as the core of hiring, admissions, and state programs, and stops taxpayer-funded discrimination.

Law Enforcement and Order

Several notable new laws have been passed.

The distribution of Fentanyl that results in a death is now a felony.

A new “hands-free driving” mandate increases penalties for distracted driving.

The Child Online Safety Act requires age verification, parental controls, and stronger protections online.

Also, digital exploitation and AI Deepfake laws criminalize AI-generated explicit images.  Offenders will be required to register.

Laws have been enacted targeting “Smash and grab” retail theft and organized crime.

Anti-squatter protection laws provide a fast process for removal and security.

Liquor liability laws end the punishment of bars, restaurants, and VFW posts for someone else’s negligence, protecting small businesses from high insurance rates and frivolous lawsuits.

Pay raises for Law Enforcement personnel is included in this year’s budget, as is budgeting for School Resource Officers (SROs) for every school.

The budget includes funding for personnel and the tools needed to address Internet Crimes Against Children (ICAC), which spiked 143% last year.  

Infrastructure

$200 million has been allocated for bridge repair (year two of $1 billion commitment.

Investments are to be made for roads, airports, water, sewer, and hurricane recovery.

Preparing for the Future

Planning for the future includes four areas:  disaster relief and resilience, mental health and healthcare innovation, cybersecurity and AI upgrades, and strengthening military communities and retirement programs.

2026 Legislative priorities

Assuring a disciplined, conservative, focused agenda to make South Carolina a national leader.

Mission

Continue fighting for freedom, families, and a more affordable South Carolina.

House Republican Caucus Priorities for 2026

Freedom:  Defend the Constitution, hold government accountable, uphold law and order

Family:  Protect Children, empower parents, uphold values and safety of our communities

Affordability:  Cut taxes, eliminate inefficiency, strengthen South Carolina as the best place for families to build their future.  

Roads:  Build smarter, reduce congestion, safer communities

Conclusion

Speaker Smith finished his presentation saying, “We are living in a moment of extraordinary opportunity.  South Carolina is growing.  Our economy is booming.  Our future is bright.”

He pointed out that none of this happened overnight or by accident, and that we must work hard to ensure that South Carolina’s future generations enjoy the best lives possible.

“South Carolina’s best days are still to come.”

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