|Snowed Under By Taxes|
In South Dakota
In that piece I had to ignore property taxes on agricultural land for space reasons and am glad that Commissioner Niederwerder followed through on this essential element in the conversation about tax reform. He calls property taxes "the most regressive form of taxation" and adds, "ag property does produce income; however the taxes due are not based on the actual income produced, but rather a Department of Revenue bureaucrat's theory of what it should be able to produce."
This seems an amazing and intolerable situation. The taxable amount is driven by income, which I can see, but not on actual income. It's based on theoretical income. There's an intrinsic craziness to this set-up--sort of like my accountant informing me that my tax obligation this year is not based on what I actually made but should have been able to make. Subjected as they are to that kind of nuttiness, it's little wonder that Niederwerder and his many ag-oriented constituents in Meade County are crying "foul" and calling for some reform. I know enough about the grain and livestock markets via my many years as a commodities trader, broker and producer to understand that producers have gotten clobbered during the past couple of years.
Actually, the 76% drop in ag income in South Dakota during 2015 is more like a bloodbath than
|Wheat Prices Wither|