Could the Daugaard Administration be seeing the light on a progressive tax system? Bob Mercer reports that Pat Costello, chief of the Governor’s Office of Economic Development, told the Legislative Planning Committee yesterday that our lack of a state income tax is actually getting in the way of recruiting businesses and workers:
The lack of a state income tax causes people from income-tax states to question why South Dakota doesn’t have one and what they would have to give up if they move to South Dakota, he said [Bob Mercer, “No State Income Tax = No Trust?” Pure Pierre Politics, 2016.05.17].
Wow—ending the Governor’s schmoozy GOED golf tournament, admitting that taxes don’t motivate young people to move… who keeps sneaking good sense into Pierre?
I wouldn’t advocate a state income tax just to counter a perception. I would advocate a state income tax to replace some of our sales and property tax and make our state tax system more balanced and progressive.
Bonus Reading: South Dakota’s resistance to taxing income has unfairly burdened the poor since at least 1987:
Treating the poor and middle class unfairly can’t be good for our reputation, either. We still have a regressive tax system, and raising teacher pay with more sales tax (starting in two weeks!) will only make it worse. Could Costello’s statement to the Legislative Planning Committee yesterday signal that the Governor is ready to work with next year’s new progressive Legislature to work on serious tax reform?