SC budget negotiators reach agreement on tax cuts

COLUMBIA, S.C. (AP) — South Carolina House and Senate budget negotiators have agreed to phase in a tax cut for small business owners over three years.

The conference committee broke a weeks-long stalemate late Tuesday on the issue. But a larger compromise on the budget remains.

The tax cut agreement gives $20 million in tax relief yearly, eventually reaching the $60 million the House wanted. Small business owners who report their earnings as personal income would see their tax rate reduced from 5 percent to 3 percent by 2014-15.

The deal reverts to what the Senate offered Friday. A counteroffer Tuesday from the Senate would have given $40 million in relief immediately but focused the benefit on very small businesses.

But House Ways and Means Chairman Brian White said that was too complicated.