|SD Makes Projections On This?|
Give Me A Break
Even more wondrous to me is that nobody in Pierre acknowledges the obvious, which is that our fiscal policy is based on finger-crossing. South Dakota's agriculturally-dependent economy has suffered a three billion dollar hit in the past few years, seriously cutting down the flow of cash that streams through the state and surfaces as taxable sales. For the government to base its cash-flow projections on any assumptions about commodity prices is folly, as we've seen the past couple of years. Our state's rigid dependence on sales and, more locally, property taxes for the lion's share of operating revenues is the stuff of gambling and hoping that lady luck will be with our commodity markets every crop year.
A comprehensive review with an eye toward tax reform should be on Governor Daugaard's order of business for the remaining months of his term. Our regressive sales tax-based system (4th most regressive in the nation) plants its burdensome feet most heavily on our lower-income residents, and our high property taxes (16th highest in the country at 1.4% of valuation--mine being closer to 2%) could stand some downward adjustment. Taking those taxes down significantly and replacing the revenues with corporate and possibly individual income taxes
|An Impractical Set-Up|
That's Also Unfair