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Thursday, July 26, 2007

Rounds Wants Increased Taxes

Real Republican conservatism at work: Governor Rounds wants higher taxes. AP reports that Smiley Mike (and the National Governors Association Economic Development Committee of which he is the newly appointed Republican leader) will study ways to get more money out of companies and ultimately consumers shopping online. Governor Rounds is chasing the fabled internet sales tax, revenue denied the state's coffers by out-of-state companies who don't collect sales tax from South Dakota buyers.

I know, I know, the good Governor can claim he's not increasing taxes but simply pursuing "lost revenue" (as much as five billion dollars nationwide... divide that 50 ways, that's a hundred million dollars for each state -- I encourage readers to submit more detailed and documented stats!). But it's still higher taxes, tax paid where no tax is paid now. Does the this Republican governor really want to risk stifling business and innovation with this draconian tax regime? And does this Republican governor really support the expansion of federal power that enforcement of such an interstate commerce measure would require?

Hmm... if the governor does believe South Dakotans can afford to give the state another hundred million dollars without hurting our economy or quality of life, why not pursue a more local solution, something more easily enforceable, like, oh, say, a state income tax? Oh, but I forgot, an income tax would go against Republican principles of limited government and no new taxes....

Principles are wonderful. If the GOP had kept theirs, they might have me.

4 comments:

  1. Principles are wonderful; if the GOP kept theirs, they would have kept me??? Come now.

    There are those of who believe that Republican principles outshine Democrat's any day of the week. Just depends on what your core political beliefs are.

    If you want the gov't to take care of everyone's problems, higher taxes to fund more social programs, appeasement of international aggressors, etc, then you prefer the Democratic party.

    If you believe in more personal responsibility and less reliance on the gov't to solve all of your problems, less gov't intrusion in your life, lower taxes, a strong national defense, then you are probably Republican.

    Both parties have principles, or lack of same depending on the person involved. But it isn't principles that drive a person to one party or the other, it's what a person believes as above.

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  2. Here's a question. I recently purchased a Dell Computer on-line and was charged South Dakota sales tax. I have had some other on-line purchases that show South Dakota sales tax was collected. I asked the sales rep at Dell to confirm that the tax being collected is actually sent to our State. Obviously, he couldn't confirm anything, other than the fact I was charged SD sales tax. I'm not complaining because I feel the tax is due, after all, I would have paid it at Best Buy in Sioux Falls, had I purchased a computer there. Why are some companies charging sales tax for SD purchases and some aren't? What means does our Revenue Department have to audit and confirm that those tax dollars are actually making their way into our State coffers? Now that we have all these Full-Time RV'ers claiming their SD residency, why not allow them to contribute when they have purchases sent to their SD address? This isn't a Republican or Democratic principle at stake, it is simple, fair economics.

    ReplyDelete
  3. Very good questions and points, Anon!

    Dell charges sales tax -- they charged us, too. They better have sent that money to Pierre! I'll be torqued, too, if they're cheating the state and you and me!

    But if Dell is cheating us, I don't know what means or authority, if any, the state Department of Revenue and Regulation has to collect or even investigate. I know that a couple years ago, the started requiring schools (and probably every government entity) to do business only with out-of-state vendors who are on a state-approved list of companies paying their fair share of sales tax. The state can penalize its own agencies for violating that rule, but it might lack the authority to go after private citizens or businesses who deal with non-compliant out-of-state vendors.

    Heck yes, those full-time RVers ought to pay their fair share. But then, are they really contributing to the South Dakota economy or community in any way? Aren't they just tax-dodgers? (Of course, you can't dodge taxes when you buy gas for those big rigs!) Let's impose an income tax on them -- can't dodge that with online purchases! (And we could impose a 3% income tax to offset property tax reductions and still get those RVers to register their residency here, since a 3% state income tax rate would still beat almost every state in the union!)

    I agree, Anon, that our real concern needs to be fair taxation and good economic practice. Every now and then, though, it's important to check whether other people are holding to the principles they like to use to win elections and justify their actions. Even a conservative like Greg Belfrage at KELO-AM recognized the same contradiction, or at least "spin," on the governor's part that I did (though note: I posted first! hee hee!).

    ReplyDelete

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