Governor Kristi Noem told KELO-TV’s Perry Groten yesterday that House Bill 1137, the Legislature’s 0.3-percentage-point reduction of the state sales tax rate, isn’t really a tax cut. “It’s a temporary tax holiday,” said Noem, referring to the 2027 sunset clause in HB 1137. “Anybody else who calls that a cut is lying.”
In early November 2017, then-Congresswoman Kristi Noem touted Trump’s “Tax Cuts and Jobs Act” as, among other things, “appropriately named“. She evidently believed those Trump tax cuts were real tax cuts: she has celebrated those cuts ever since.
But almost all of the tax cuts for individuals are temporary. They sunset at the end of 2025, a pending tax hike for millions of not-stinking-rich Americans that House Republicans are struggling to repeal.
So by the logic Noem expressed yesterday, Trump’s Tax Cuts and Jobs Act did not provide tax cuts, at least not for many individual taxpayers; it provides only a temporary tax holiday. Anybody else, including Kristi Noem, who calls any of those sunsetting individual tax cuts a cut is lying.