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Wednesday, August 17, 2005

Call for dialogue: State income tax -- What are we afraid of?

Dr. Palleria's comments bring up a point my wife and I have wondered about throughout our conversations about tax reform in South Dakota. Every time we have discussed replacing sales and property taxes with a state income tax, we have heard responses like Dr. Palleria's: It sounds good, but it'll never fly. The legislature will never vote for it. People will never go for it.

Help me out here, South Dakota. Post your responses: What are we afraid of? What disaster would ensue from the imposition of a state income tax? How would a state income tax be worse than the current taxes on property, sales and use, contractors, etc.? And why, if 60% or more of South Dakotans would pay less in taxes under a state income tax, would South Dakotans never vote for such a tax system?

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