As investor enthusiasm for Trumpocracy fades, South Dakota continues to see no Trump bump in its economy. The Legislature’s Executive Board received an update Tuesday that shows sales tax revenues still lagging:
State sales tax revenues have fallen below the previous fiscal year’s revenues for eight of the nine last months.
And remember, we’re charging an extra half-cent sales tax on every dollar sale than we did in FY2016, so that 2.16% drop in tax revenues in March represents a 13.03% drop in taxable sales. [Correction! 2017.04.21 16:08 CDT: Notice that term “base sales tax” in the charts? LRC calculated these revenues based on the old 4% rate, to compare apples to apples. They did not include the extra half-penny tax for teacher pay, so the 2.16% drop in sales tax revenues does indeed present a straight 2.16% drop in taxable sales, not the even worse 13.03% drop that I feared. I apologize for the error.]
Bob Mercer reports that South Dakota would need 13.4% growth just to hit the reduced budget target that legislators adopted just two months ago to get us through June 30.
Hmm… if South Dakota really wants to cash in on the Trump economy, we should stop flying to Vegas to recruit pistol and rifle makers—peashooter sales are slumping under Il Duce—and work on getting Raytheon, Dynetics, and other big defense contractors to build factories here. Under Trump, the big money is in missiles and bombs!