food tax

South Dakota’s Regressive Sales Taxes are a prehistoric way to fund government

l3wis May 23, 2017 10Comments

As if it isn’t bad enough that the state taxes food, and increased it by a half penny last year, now the state wants to implement another penny and a half on Farmer’s Market food sold by Falls Park. The state may be able to pull this off. Because state law says they can charge this additional tax to any retailer at a tourist site.

State Rep. Jamie Smith, D-Sioux Falls, said while he understands the revenue office is only enforcing the laws that are already on the books, an exemption for farmers markets is something he’d support. While he believes there shouldn’t be any taxation on food, burdening local producers with a higher tax than grocery stores will only deter the public from using alternative food sources.

“We’re discouraging locally grown products,” he said. “Those are dollars staying local right here. The person that grew that carrot lives here, spends money here and goes to school here.”

I guess I would have two arguments against the additional tax. First off, they are not selling souvenirs, they are selling FOOD. Secondly, the Farmer’s Market isn’t really in Falls Park, it’s actually wedged between a stinky meat packing plant, and a blue-collar bar, hardly the tourist attraction. People come to the market to buy fresh produce and the occasional jar of raw honey. They are not buying T-shirts of Falls Park.

I guess things are getting so desperate for the state and the city, they are looking to start charging additional fees on anything they can, including claiming organic food products are now souvenirs.

The sad part is they continue to make excuses about the farm economy and internet sales instead of offering solutions (and there are really simple solutions out there). They keep wanting to beat the dead horse hoping to suck more money out of it.

Let’s face it, sales taxes are regressive and primitive. Don’t get me wrong, they are applicable for many things, but should NEVER be charged on necessities like Food, Clothing and Energy costs.

Of course everyone fears an income tax. To most hard working South Dakotans, an income would never even touch you or effect you.

I would suggest we implement a three step process over 6 years;

First step would be to eliminate ALL sales taxes on anything tangible or a service that is considered a necessity of life or living. For example, you wouldn’t pay a tax to get your tire fixed on your car but you would pay one at a sun tanning salon. I would then increase that sales tax to 10-12% on all the remaining products and services. There would also be a ‘luxury’ clause. If you bought a minivan for your family of 5, you probably wouldn’t pay a tax on that, but if you bought a Porsche Crossover, there may be a tax. Same would go with luxury homes.

I would wait two years before implementing step two, which would be a income tax on corporations profiting more then $2 million a year, singles making more than $100K a year and households making more than $200k a year. This would be a flat tax of about 5-7% with NO exemptions.

I would wait another two years to implement the last stage, shut down Video Lottery. I would keep property taxes where they are.

Let’s face it, we can continue to bitch and complain about sales tax revenue going in the hole, but as the gap between the rich and poor get bigger, it’s reality, because it is a regressive tax. Tax those who can afford it.