South Dakota’s Regressive Sales Taxes are a prehistoric way to fund government

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As if it isn’t bad enough that the state taxes food, and increased it by a half penny last year, now the state wants to implement another penny and a half on Farmer’s Market food sold by Falls Park. The state may be able to pull this off. Because state law says they can charge this additional tax to any retailer at a tourist site.

State Rep. Jamie Smith, D-Sioux Falls, said while he understands the revenue office is only enforcing the laws that are already on the books, an exemption for farmers markets is something he’d support. While he believes there shouldn’t be any taxation on food, burdening local producers with a higher tax than grocery stores will only deter the public from using alternative food sources.

“We’re discouraging locally grown products,” he said. “Those are dollars staying local right here. The person that grew that carrot lives here, spends money here and goes to school here.”

I guess I would have two arguments against the additional tax. First off, they are not selling souvenirs, they are selling FOOD. Secondly, the Farmer’s Market isn’t really in Falls Park, it’s actually wedged between a stinky meat packing plant, and a blue-collar bar, hardly the tourist attraction. People come to the market to buy fresh produce and the occasional jar of raw honey. They are not buying T-shirts of Falls Park.

I guess things are getting so desperate for the state and the city, they are looking to start charging additional fees on anything they can, including claiming organic food products are now souvenirs.

The sad part is they continue to make excuses about the farm economy and internet sales instead of offering solutions (and there are really simple solutions out there). They keep wanting to beat the dead horse hoping to suck more money out of it.

Let’s face it, sales taxes are regressive and primitive. Don’t get me wrong, they are applicable for many things, but should NEVER be charged on necessities like Food, Clothing and Energy costs.

Of course everyone fears an income tax. To most hard working South Dakotans, an income would never even touch you or effect you.

I would suggest we implement a three step process over 6 years;

First step would be to eliminate ALL sales taxes on anything tangible or a service that is considered a necessity of life or living. For example, you wouldn’t pay a tax to get your tire fixed on your car but you would pay one at a sun tanning salon. I would then increase that sales tax to 10-12% on all the remaining products and services. There would also be a ‘luxury’ clause. If you bought a minivan for your family of 5, you probably wouldn’t pay a tax on that, but if you bought a Porsche Crossover, there may be a tax. Same would go with luxury homes.

I would wait two years before implementing step two, which would be a income tax on corporations profiting more then $2 million a year, singles making more than $100K a year and households making more than $200k a year. This would be a flat tax of about 5-7% with NO exemptions.

I would wait another two years to implement the last stage, shut down Video Lottery. I would keep property taxes where they are.

Let’s face it, we can continue to bitch and complain about sales tax revenue going in the hole, but as the gap between the rich and poor get bigger, it’s reality, because it is a regressive tax. Tax those who can afford it.

Sales Tax Revenue down EVEN MORE than last year

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Click to enlarge.

Finance Director Tracy Turbak will be making his monthly report at the informational meeting at 4 PM. So far, the sales tax growth is even more dismal than last year. For the first 3 months we are at 0% growth. Ouch.

Since I am not an economics major, I really can’t tell you why this downward spiral is happening. Obviously the farm economy isn’t doing well, but with Sioux Falls having so many residents, you would think this would not affect us this much. I still kind of wonder if we really didn’t recover from the last recession. Wages continue to be stagnant, and that is obvious with all the food banks growing and the lack of affordable housing.

Expanding Gambling in SD is NOT the solution to Economic Development

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Sorry to see Yankton is doing so badly. I have never understood why, they sit on one of the most beautiful lakes in South Dakota. The economic development options on Lewis & Clark, I would think would be endless. Look at what Okoboji has done without a Casino on their waterfront.

Expanding gambling options in South Dakota is NOT the answer. The irony is that they would only be pulling gamblers from Fort Randall and Nebraska Indian Casinos, they would not be creating any new clientele.

Oh, and Gambling SUCKS and is a poor way to fund government. But what is the most disheartening is that this idea is being pitched by a Democrat that should know the pain gambling has caused our state;

“I think the challenge is we need to compete with Omaha, Lincoln and Minneapolis,” Senator Bernie Hunhoff said.

If that was true, which I don’t think it is, why do it with gambling?

I’m extremely disappointed with the short-sightedness of Yankton’s leaders. There is a reason why the Republicans have had control of this state for over 40 years, because the Dems in leadership roll over and play dead.

Suckers! Everyone of you!

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This is what I said about the sales tax increase last February for teacher pay;

As I have said, it is purely ignorant to raise regressive sales taxes for teacher pay when the money is already there (heck, probably sitting in reserves). This is about presenting intelligent plans to raise teacher pay, not knee jerk reactions. People want this increase SO bad, they are willing to fall back on fiscally irresponsible and ignorant taxation plans to get it. That my friends is called GREED.

They went on to pass it anyone. And guess what, they could not have done it without the help of the Democratic legislators (and as Pam Nelson has pointed out, maybe a reason why they failed so bad this past election season). The worst part about it is they had a better plan, but didn’t present it, instead they went along with the Republican Governor’s plan, and guess where that got us? Exactly where I knew this would end up!

The House of Representatives on Tuesday night approved Senate Bill 35, which strikes the specifications for how the half-cent sales tax are used. Appropriators on Wednesday morning said that given the strained state economy and lower than expected revenues, education funding would remain flat.

Only one year later and the Governor (who cooked up the sales tax increase to begin with) already wants to rob the pot. ONLY ONE YEAR LATER! And once it happens, there is NO going back. The tax will NEVER be repealed and the teachers will never fully receive the money.

Some accuse me of being too cynical. But it is my cynism that sees this crap a mile away. When crooks are in power for the past 40 years, you don’t just wake up one morning in 2016 and say, “Let’s trust them this time, it’s for the teachers.”

Can you hear that sound . . . it gets louder the closer you are to Pierre.

South Dakota State Legislature proves they still hate the poor & working class

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No surprise, every year this comes up, and every year their desire to stick it to the poor (and frankly anyone who eats food) is maintained;

The House Taxation Committee voted 11-3 Tuesday to defeat the bill. It would have increased the state’s 4.5 percent sales tax rate on other goods and services to remove the tax on food for home consumption.

Long a popular idea among Democratic lawmakers, such food sales tax bills have failed in the past. Democratic Rep. Ray Ring, the bill’s main sponsor, says the measure would help make South Dakota’s tax structure less regressive.

Business organizations, Republican lawmakers and the executive branch opposed the bill.

It is estimated that those on the lowest level of the income bracket in our state pay between 16- 20% of their income towards taxes, and the working class isn’t much better.

I’m against sales taxes to begin with, a horrible and regressive way to fund government, but taxing food and exempting stuff like advertising makes no sense at all. If we are going to tax food at the full 4.5% state tax rate, we should tax EVERYTHING at that rate, no exemptions.

The SD GOP proves once again what they think about the working stiffs of this state, you are dirt, oh, and please stop voting for measures that make us do our job ethically.

‘House of Lords’ is right.