With the story about Pandora Papers coming out yesterday, the one thing that has often frustrated me about the trust companies in South Dakota is that having all that money parked here doesn’t benefit the state coffers one bit.
Even if we had a simple state finance charge or a transaction fee that was incredibly tiny, we could rake in millions for education and infrastructure.
The first problem with that is the ones that hold onto the trusts could no longer be secret.
I ask our legislators, why are we allowing them to be here if they serve no public good? You know like PO box RVers, sales tax on food and video lottery.
Nevermind.
“In South Dakota We Trust”…. The new state motto.
How does the Sanford International make us healthier? Why is the Governor’s Hunt invitation list kept secret?
How do our trust policies benefit the average citizen in South Dakota? TIFS and etc, and the list goes on.
South Dakota has become merely an instrument of influence for the few, for the wealthy. South Dakota has become a service club for the rich, so that they can network to further their ambitions, their wealth, and their control of the masses.
South Dakota has become a cesspool of corruption, inequality, and abuse as a result, where the average citizen’s sales tax revenues and video lottery plays are used to hold up a state, while the rich play without regulation. It’s like a casino with a back room where only the high rollers can play, while the rest of us allow ourselves to be merely entertained in open regulation with rigged one-armed bandits and the hopeless dreams of winning the new car found on the flashy turn dial. Or, it’s like the average citizen in South Dakota giving the dancer a dollar in the open, while the wealthy in South Dakota head to the VIP or champaign rooms.
A course, all of this is marketed as freedom, but true freedom has responsibilities and consequences, but so far the rich seem to go unabated in this state when it comes to their so called “freedom”. AND, although many of us may still trust in God, it’s the state that we no longer trust.
“Uh”…. “That’s ‘champagne’, but not that I would know, however”….
So how do they hurt us? I think help is provided by jobs in the field.
It’s shameful what has become of this state. With what was reported yesterday there should be Feds coming in to expose the trusts and some of the political corruption. What’s especially sad is there’s all that money but 47% of school age children don’t get enough to eat. Meanwhile our Governor travels everywhere else. She’s become known for her affair, paternalism in government, and sending our National Guard to herd migrants at the Mexican border. The presidents on Rushmore would put their backs to Pierre if they weren’t attached to a mountain.
I am a big fan of TRUSTS, this is one of those subjects I will disagree with you on. TRUSTS do help South Dakota, as 1) People who invest into South Dakota, furthermore they create jobs in the future; and 2) South Dakota is playing a huge role in the country to allow Americans to avoid Federal Income Taxes, legally.
#1 Reason to establish a TRUST, it is untaxed money today, allowing you to earn income ‘tax free’, while saving it for the future, and as people spend the money, the State always has a constant flow of sales tax revenue.
I say, deregulate the TRUST laws, and allow more people to take advantage of them. I love them.
But thats part of me being a Anti-Federalist.
MP,
Janklow got rid of the rule against perpetuity (1982), which makes these South Dakota trusts popular. Thus, it then becomes federally untaxed money which is passed on to the next generation and beyond. Which means when South Dakota takes in more than it gives out each year in federal tax dollars, our federal government has to run greater deficits to maintain this tax shelter for the super rich. It actually hurts not just South Dakotans, but also all Americans. Plus, greater wealth generation in the hands of the few is not good for the greater good of any democracy (republic).
The Council for National Policy has infiltrated Pierre and the extremist South Dakota Legislature because banks in my home state are hoarding nearly $4 TRILLION for its members including Robert Mercer, a CNP member and Long Island hedge-fund manager who bankrolled Donald Trump’s presidential campaigns. According to accountant and former State Senator Susan Wismer (D-Britton) there are about $900 billion in 105 trusts alone.
Republican South Dakota Governor Kristi Noem addressed a meeting of CNP last August. Noem is also a graduate of the Koch Brothers’ American Legislative Exchange Council or ALEC, an anti-think tank think tank that teaches how wedge issues raise campaign dollars for the nut wing of the Republican Party.
The resultant soaring median age of the retirees seeking deliverance from the cultural diversities thriving in Colorado, California, Minnesota, even Arizona and Oregon drives the exploitation of South Dakota’s regressive tax structure and reinforces the racially insulated Nazi enclave that the state is today.
In before “Woodstock” with this musing,
“Yah, and the jobs Mark is counting don’t even include those dedicated to businesses which accomodate all of the trust lawyers from the best firms in the world which do some scuba diving during their business trips to South Dakota.”
“… a service club for the rich …”
VSG describes perfectly the state of republicanism in Sioux Falls.
There is no political ideology. No principles. Only the common thread which is the pursuit of mammon.
Mike’s characterization of the benefits of trusts is the same argument used with supply-side economics, or what David Stockman once called trickle-down economics. It doesn’t work and it never happens the way Mike has characterized it.
President Obama in one of his latter State of the Union addresses mentioned this tax loophole with trusts that we currently have with our federal tax code. He suggested in that speech the loophole needs to be closed. It still hasn’t been closed and needs to be done by the Democrats before the Republicans take over in ’23. #IamARealist
( and Woodstock adds: “Republicans taking over?”…. “VSG, I thought you were on our side.” (“Although, he’s probably right about that one”… ))
Fundamentally, tax loopholes are not fair. They’ve always existed but they’re now extreme. Biden is grumbling about higher tax for the rich and some relief for lower income. What could work better is offering trusts a reduced rate instead of capital gains from withdrawals. Money should come out for regular investments and increased circulation (spending). Churning this way prompts business activity, prevents inflation, and holds the value of the dollar.
i highly doubt that those hiding money in trusts are taking it out and spending it here. it does nothing to boost the sales tax coffers.
Agreed, trust money would not be spent here. Therefore, no sales tax revenue. The state has become a trust haven primarily because there’s no state income tax and lack of reporting. Otherwise, it’s not worth exposing and litigation recovery this far from a major city. This year the IRS has imposed reporting for checking accounts with balance over $10K. There could be similar reporting for Trusts. SD has white collar jobs that would be lost. Trust money would only get telicated into overseas tax havens. What’s true for the moment is the present case works for SD but the Feds might impose change.
Here’s a good one:
https://newrepublic.com/article/163879/pandora-papers-abolish-south-dakota
South Dakota will never allow the IRS to have that much power here in the State, and will go like mad to protect the private information of South Dakota Citizens.
What is best for Americans is a 0% Federal Income Tax. IF the Federal Govt wants revenue, then ask the State Legislatures to put forth a tax plan to charge the citizens of South Dakota, and then as a “State” we collectively pay our fair and direct share to the Federal Govt for our ‘share’ of combined national expenses such as Defense, National Emergencies, Disasters, and War.
ABOLISH the 14, 16, and 17 Amendments, and Restore the Republic of 50 States, and then shutdown the I.R.S period. NO MORE FEDERAL INCOME TAX !!!
Mike, are you a confederate?
AND, you do realize that if we got rid of the 14th Amendment, it would make the 16th and 17th Amendments moot relative to states and its citizens, right?
I am a proud “Anti-Federalist” just like Thomas Jefferson, Patrick Henry, and George Mason to name a few of them.
I have long been a huge proponent of repealing the 11th, 12th, 13th, 14th, 16th, and 17th Amendments and restoring the State Right control of the Federal Govt.
The 13th Amendment needs to be rewritten taking out a few words, and simply stating “The Banning of Slavery” with no other words needed.
14th Amendment is no longer needed, and Citizenship is a birth right citzenship based on the State of Origin.
16th Amendment needs to repealed to re-instore the Direct Tax Rule mentioned in Articler 1, Section 9, Clause 4.
and the 17th Amendment needs to repealed to place the Legislatures back in charge of the U.S Senate.
11th Amendment would remove all power held by LAWYERS upon the Congress, while the 12th Amendment needs to be repealed to make the Vice President again the Runner Up choice for President.
And yes – ALL Americans owe no Allegience to the Federal Govt, they owe allegience to their “STATE” first, Country second.
There should be NO Federal Income Tax period.
IF, if the Federal Govt needs to directly tax the people in order to pay for a War, Conflict, National Disaster, National Emergency, or the Collective Debt of the Country, then the U.S HOUSE needs to submit a revenue bill to the U.S Senate, who then submits a request to assess a Direct Tax Plan to the STATE LEGISLATURES.
The State Legislature’s then have to meet in the State Capitols to discuss a tax plan to directly tax their citizens (sales tax, property tax, income tax, etc), which most states have a rule that the PEOPLE have to publically vote to approve of such tax plan. IF aproved, the State Department of Revenue collects the tax from the people, remits that payment to the Federal Treasury for “OUR” portion of the federal expense. That is a Article 1 Tax as implied under A1, S9, Cl. 4