I noted last week that Democratic gubernatorial candidate Billie Sutton’s stated opposition to a state income tax cedes too much ground to the Republican fiscal mythology. Independent blogger John Tsitrian says Sutton’s pragmatic political positioning ignores both the data and even his Republican opponent’s statement that our state economy needs fixing:
When asked why our state shouldn’t be taxing income, Sutton supported the present and disdained the future by saying that “we are attracting more people here and attracting businesses here. We have a very good welcoming business community and culture here in South Dakota. We want to keep it that way.”
Keeping it “that way” is a woefully poor standard to maintain in South Dakota. Even Sutton’s opponent, Republican Kristi Noem, acknowledged as much last Spring when she declared that “our economy is falling behind.” Our state’s economic performance relative to the United States and the surrounding region has been awful. More pointedly, “that way” has been surpassed by our surrounding states, most of whom have an income tax. The management and consulting behemoth McKinsey and Company just released a table comparing economic conditions by state, using rates of in-migration of millennials as the standard for comparison. Published in U.S. News and World Report last May, it ranks South Dakota behind the five of our immediate neighbors (Minnesota, North Dakota, Montana, Iowa, and Nebraska) that have a state income tax [John Tsitrian, “Only in South Dakota Could Billie Sutton Pass for a Democrat,” The Constant Commoner, 2018.07.24].
That U.S. News ranking Tsitrian cites puts South Dakota at 28th for overall economic health. We’re 12th for employment but only 33rd for growth and 40th for business environment. Again, the point is not that imposing an income tax would automatically employ more people, stimulate economic growth, or make more businesses move here; the point is that having a state income tax does not stop Minnesota, Colorado, and Massachusetts from beating us in all three of those categories.
The cheap memes and manufactured controversy on the SDGOP Party spin blog show that Sutton’s recitation of Republican boosterism won’t take the Republicans’ favorite hysterical fiscal issue off the table. When even Noem isn’t reading from that script, it’s the perfect time for Sutton build on Noem’s complaints and make a passionate, base-rallying, independent-inspiring case for making our state’s taxes more fair, progressive, and supportive of quality of life and economic development.
Wallet Hub has SD ranked 45th overall on state (+D.C.) economies in 2018, 51st in its “economic activity” ranking, 46th in its “innovation potential” rank. Its “economic health” rank comes in at a respectable 15th. I’m guessing that our overall debt to equity ratio is fairly decent, thus the relatively good score on that last list. https://wallethub.com/edu/states-with-the-best-economies/21697/ Our per capita GDP growth in 2017 was less than half that of the U.S. https://www.bea.gov/regional/bearfacts/pdf.cfm?fips=46000&areatype=STATE&geotype=3
“Only in South Dakota Could Billie Sutton Pass for a Democrat.”
Great title John, and right on the nose.
Trickle down has been the SDGOP plan for 40+ years and the stats John just shared in the previous comment show what a complete and utter failure it’s been.
Cory had a better idea in an ensuing post when he suggested that rather than Aberdeen giving $324,000 to one scam, er, business, they give $1000 to 324 people on the lowest end of the income scale. That money will quickly fountain up and out as they pay bills, make postponed purchases, get dental work, etc.
A fair, progressive income tax can have a similar effect if it’s used correctly.
I like Billie a lot and of course I will vote for him. And his capitulation to GOP ideals may in fact help him to get elected. That said, this kind of nonsense and his refusal to stand up for Choice are the things I would hate if a republican did the same–pandering for votes rather than taking a stand–are not OK just because a democrat is doing them.
Thanks, John! Interesting how WalletHub’s methodology can produce such different results.