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The Republicans tell us that an income tax would kill business in South Dakota. My neighbor Gerald Lange offers them an opportunity to kill our state's income tax. Those same Republicans forget the slogans they use to get elected and vote to keep the income tax.
I guess Republicans don't really believe income tax is bad for business, even in the midst of a recession. Remember: the financial sector employs nearly 30,000 people in South Dakota. The finance and insurance sector (we hit insurers with a special premium and annuity tax, too) are South Dakota's leading industry, cranking out 19% of our GDP.
Read that again: South Dakota's leading industry pays a state income tax.
The 8–6 House Taxation Committee vote killed HB 1123. For the record: the following Republicans—Republicans!—voted to keep the income tax:
- Brock Greenfield (R-6/Clark)
- Kent Juhnke (R-21/Vivian)
- Mark Kirkeby (R-35/Rapid City)
- Dan Lederman (R-16/Dakota Dunes)
- Kristi Noem (R-6 Castlewood)
- Ryan Olson (R-24/Onida)
- Lance Russell (R-30/Hot Springs)
- Roger Solum (R-5/Watertown)
- Dennis Feickert (D-3/Aberdeen)
- Peggy Gibson (D-22/Huron)
- Bernie Hunhoff (D-18/Yankton)
- Patrick Kirschman (D-15/Sioux Falls)
- Gerald Lange (D-8/Madison)
- Bill Thompson (D-13-Sioux Falls)
This voting record is indeed strange. The original law calls it an "annual tax." The bill (HB 1123) calls it an "income tax."
ReplyDeleteThe bill was deferred to the 41st legislative day, so the whole business has no net practical effect. But ... Republicans wanted to keep a tax on banks, and Democrats wanted to get rid of it? What have I missed?
It's the same old story from Gerald Lange who has been pounding for a personal and corporate income tax for decades, yet we continue to elect him, ineffective as he is. This time, they add a new twist in an effort to bring forth the state personal income tax story again.
ReplyDeleteNormally, they are touting removing sales tax on food and clothing, removing sales tax on vehicles, and now, removing the bank franchise tax, which if it passed, would require a replacement tax of some sort, most logically, the state personal and corporate income tax. They're always trying to find a crack in the armor.
Should corporations at least pay a tax on their income in South Dakota? Most would agree that Walmart, Target and others should pay similar taxes to what they pay in other states, but trying to draw the line between huge corporations and our mainstreet corporations or incorporated ag producers is the issue.
Removing the annuity tax is something that should gather traction as the state is taxing the savings of our elderly on fixed incomes. It should take the same path as the state inheritance tax.
We all want someone else to pay taxes. In Lange's case, he wants everyone else to pay, except him.
Rod, I can't let you make this a personal thing about Gerry. This is about what we hear from Republicans about income tax and what they actually do. Republicans tell me income tax is bad. They have a chance to get rid of it. They keep it. If you're telling me the only reason the Republicans passed up this golden opportunity just to tweak a Democrat they don't like, that tells me the Republicans are a petty and insincere bunch, putting personality over good politics.
ReplyDeleteBy the way, trying to get almart and Target to pay their fair share is exactly what Rep. Lange has proposed. Get on board!
Cory, I actually admire Gerry Lange's passion, not his positions. He's so tunnel-visioned about personal and corporate income tax that he just keeps sticking that needle under the finger nails of the Republican majority, as if they're going to be embarassed from disagreeing with Gerry.
ReplyDeleteMy favorite story, the story that tells me everything I need to know about how Gerald Lange thinks about tax fairness, is when I was a board member at Prairie Village. Gerry was caught climbing over the west fence near Lake Herman during the Jamboree because he didn't want to pay the $5 admission. Like I said, he wants everyone else to pay, but not him.
"that tells me the Republicans are a petty and insincere bunch, putting personality over good politics."
ReplyDeleteI agree, but so are the Democrats. And that was exactly what Rod was saying regarding "insincere". Let us all (Republicans, Democrats, and Independents) agree the system is corrupt, and then go about fixing it.
Steve Sibson
I repeat, Rod, personal jibes at Gerry have nothing to do with the hypocrisy and pettiness of the Republican position on this bill.
ReplyDeleteAh, legislative fun and games.
ReplyDeleteRepublican positions in South Dakota are so shot full of holes or so hypocritical and inconsistent that mere logic is insufficient to display the GOP humbug.
Even so, we need a unicameral. SD is now about 90 years behind Nebraska. Duplicate houses are a total waste of money after the one-man one-vote court rulings.
Actually, Rod, the "tax thee not me" of which you baselessly accuse Gerry more accurately describes everyone in South Dakota who opposes a state income tax. Check out what Professor Frank Dobbs says on Dakota Day:
ReplyDelete"While South Dakota's politicians and much of the public love to rail against federal taxes and spending, they love the federal money that comes in for farm commodity subsidies, ethanol subsidies, and all kinds of state and local projects. In effect, this is made possible by federal income taxes paid by citizens of other states. So let's get real about this business of an income tax. We're not really against income taxes in this state. We're just against income taxes that we, ourselves, might actually have to pay. Perhaps the greatest hypocrisy in South Dakota's dominant political philosophy is the strident advocacy of low taxes and self-reliance, while the state's economy is, in fact, hugely reliant on federal revenues made possible by an income tax" [Thomas Dobbs, "Time for a State Income Tax to Address South Dakota's Budget Woes," Dakota Day, 2010.01.22
Boy, that sounds familiar. Really familiar.
Exactly what I have been saying, both political parties are for tax and spend policies that grow government. So who is ready to stop the Democrat/GOP feud, and instead focus on fixing the problems caused by big government and corruption.
ReplyDeleteSteve Sibson
GoldMan says:
ReplyDeleteNormally, they are touting removing sales tax on food and clothing, removing sales tax on vehicles, and now, removing the bank franchise tax, which if it passed, would require a replacement tax of some sort, most logically, the state personal and corporate income tax. They're always trying to find a crack in the armor.
Aha! The catch. I knew it. Thanks! Freedom needs eternal vigilance, especially in times like these.
"I repeat, Rod, personal jibes at Gerry have nothing to do with the hypocrisy and pettiness of the Republican position on this bill."
ReplyDeleteAgain, Lange is for adding a corporate income tax, but against an income tax on banks. Their is hypocrisy and pettiness in both parties.
Steve Sibson
Stan, you're so suspicious! Who says we'd need a replacement tax? The GOP tells us that lower taxes are good. They had a chance to lower taxes, and they dodged. They could have gotten rid of the evil income tax and, if they really wanted, replaced it with a nice Neil Boortz consumption tax.
ReplyDeleteBut let me see if I understand the logical framework here: are you and Rod saying that in our eternal vigilance to protect freedom from state income tax, we need to maintain a state income tax that singles out specific industries... even as we rely on net revenue from Uncle Sam paid for by federal income tax?
This is why I left the GOP: I found that to defend the party's actions, I had to construct complicated sentences that made no sense.
Cory, you bet I'm suspicious. I'd be all for getting rid of the income tax on banks, as long we don't raise any other taxes, or impose any new ones, in an attempt to replace the lost revenue.
ReplyDeleteI would say the same thing about lowering the property tax (and mine is pretty darn high right now) or removing the sales tax on food.
Tax readjustment does not have to be bad, but I fear that unless we're careful about it, we'll end up with a "cure" worse than the "disease."
I sense this state drifting in the direction of fiscal irresponsibility, and it worries me. And yes, it's taking place under a Republican administration. I don't trust the Republicans a whole lot -- but I don't trust the Democrats at all.
But Stan, there are hardly any Dems in Pierre for you to be suspicious of. If those Republicans had voted to repeal the bank income tax, where would the sneaky replacement tax have come from? It sounds to me like the Republicans don't trust themselves enough to carry out their campaign slogans.
ReplyDelete"It sounds to me like the Republicans don't trust themselves enough to carry out their campaign slogans."
ReplyDeleteI agree they don't. They only want to get conservatives to vote for them. So now why are you agreeing to a tax cut after going on record saying tax cuts are bad for business?
Steve Sibson