This report is a summary of the major findings of the research project, Evaluation of the South Carolina Revenue System, which was prepared for the Palmetto Institute. It was authored by Holley H. Ulbrich, principal investigator on the project and Alumni Professor of Economics Emerita, Clemson University and Senior Fellow of the Strom Thurmond Institute.

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A revenue system is one of many elements that contribute to a state's competitiveness. Competitiveness means maintaining and enhancing South Carolina's attractiveness as a place to work, to invest, and to live in comparison to other locations. The state and local government revenue system of taxes, fees, and debt management has an important role to play in competitiveness -- not in the narrow sense of how low can the tax burden be but rather in a broader, more complex sense that considers the role of public revenue as part of a larger system.

What level of revenue do state and local governments need to provide the public infrastructure and services that households and businesses seek? How do governments raise that revenue in ways that are both equitable (fair distribution of the burden) and efficient (encouraging productive activities and discouraging undesirable ones)? How do these choices compare with choices made in other states? How is the state's revenue system impacted by changes in the underlying economy? What adaptations must be made to keep the revenue system adequate, equitable, and efficient over time?

In addressing these questions, the Strom Thurmond Institute explored government revenue in South Carolina from multiple perspectives: theoretical, historical, institutional, economic, political, and statistical. The research compared levels and distribution of revenue sources with those in other states, especially neighboring states. This exploration resulted in seven working papers by six researchers, which will be released over the coming weeks. Links to these working papers are below.

• Taxes in Theory and Practice, by Holley H. Ulbrich
  
  
• The South Carolina Economy and Government Revenue, by Donald L. Schunk
  
  
• Tax Structures and Burdens in South Carolina and Southeastern States, by Sanela Porca, Ellen W. Saltzman, and Holley H. Ulbrich
  
  
• Historical Development of the South Carolina State and Local Revenue System, by Ada Louise Steirer and James C. Hite
  
  
• Revenue and the South Carolina Budget, by Holley H. Ulbrich and Ellen W. Saltzman
  
  
• South Carolina's State Revenue Sources, by Holley H. Ulbrich and Ellen W. Saltzman
  
  
• South Carolina's Role in Funding Local Government, by Holley H. Ulbrich