The bill H. 3498 proposes an amendment to Section 12-6-510 of the South Carolina Code of Laws, which pertains to individual income taxes. The key change introduced by this bill is the establishment of a new tax structure where the first one million dollars of taxable income for individuals, estates, and trusts will be taxed at a rate of zero percent. Any taxable income exceeding one million dollars will then be subject to the top marginal tax rate. This amendment aims to provide a more favorable tax environment for lower and middle-income earners while maintaining a progressive tax system for higher income brackets.

Additionally, the bill includes a provision that the income brackets will be indexed in accordance with Section 12-6-520, ensuring that the tax rates remain relevant and adjusted for inflation over time. The proposed changes are set to take effect for taxable years beginning after 2024, pending approval by the Governor. This legislative effort reflects a shift towards a more equitable tax policy in South Carolina, potentially benefiting a significant portion of the state's taxpayers.