lowest tax state in the nation.

Discussion in 'Politics' started by Free Thinker, Apr 26, 2011.

  1. South Dakota maintains position as lowest taxed in nation
    South Dakota has once again taxed its residents less than those in every other state in the nation.

    A new release by the U.S. Census Bureau confirms the state’s reputation as a low-tax haven, ranking it 50th in the nation with $1.3 billion in state tax collections in 2010. It also marks the first time collections have fallen year over year since 2001 in South Dakota. The state collected $1.33 billion in 2009.

    “I don’t think it’s a surprise,” said Tony Venhuizen, a spokesman for Gov. Dennis Daugaard. “Our voters have had the philosophy we want to keep our taxes low and efficient; the ranking clearly shows we’re doing that.”

    South Dakota does not collect personal income and corporate income tax. As a result, each state resident paid on average $1,602.21 in taxes in 2010. A majority of that, $1.07 billion, comes in the form of sales taxes. Per capita, North Dakota pays some of the highest taxes at $3,933 each but that figure is skewed by taxes collected on oil and other natural resources.

    However, nationwide per capita calculations can be deceiving, according to Scott Hodge, president of the Tax Foundation, a non-partisan tax research organization in Washington D.C.

    “The census looks at tax collection and that’s not necessarily a tax burden, because there is tax shifting. So South Dakota taxpayers may actually have a slightly different burden than the government collects,” Hodge said. “For instance, North Dakota has all that mineral wealth, they can shift a lot of those tax collections and mineral extraction to taxpayers in other states as those goods are exported.”

    While South Dakotans do not have to pay an income tax, they do pay their fair share of taxes for certain products. For example, the state’s 24-cent gas tax ranks 26th in the nation. The highest in the nation is California at 47 cents. Wyoming ranks 49th with 14 cents and Montana’s 28 cents is 19th. Every pack of cigarettes sold in South Dakota also produces $1.53 for the state, ranking it 22nd in the nation. New York is the highest at $4.35 a pack.

    Venhuizen said despite those taxes, the lack of a state income tax more than makes up for the difference.

    “We shouldn’t spend more than we take in,” Venhuizen said. “Gov. Daugaard doesn’t believe in raising taxes so that means we have to operate the right size state government to where it’s in-line with tax revenue.”

    Daugaard and the Legislature cut $127 million from the state’s $4 billion budget this year.

    Rep. Bernie Hunhoff, D-Yankton, said the state needs to find a balance between frugality and investments, adding that legislators from both parties within the state are starting to ask: “have we been too cheap for our own good?”

    “From a public policy standpoint, we have decided to take a low-tax, low-frills approach to government,” Hunhoff said. “We’re going to continue to be conservative and practical, but other states are making some really smart investments in education and infrastructure that seem to be paying off for them.”

    Hunhoff said the state needs to consider it no longer competes against just North Dakota or Wyoming but is now part of a global economy.

    “We have this 1950s mentality, chasing smokestacks and having the lowest-paid workforce and lowest taxes with no industry,” Hunhoff said. “It’s not a model for success in 2011, that’ll certainly be a model for failure in 2020.”

  2. Savant


    Bullshit, South Dakota is not the lowest taxed state in the nation. There are several other states with just as low state income tax (none). They include Florida, Tennessee, Texas, Nevada and Washington.

    Wow, if this wasn't the worst excuse for a propaganda piece that I've seen in a long time.

    What kills S. Dakota, is that half of the state is an indian reservation which lives entirely off of tax dollars, which pays no taxes back to the state. Not to mention the overwhelming tendency of Indians to be alcoholics, drug addicts, and unemployed. THIS is the real cause of South Dakota's problems.
  3. Ricter


    Nice trantrum there, Savant.
  4. brilliant analysis except for the fact that you are wrong again. since south dakota gets most of its revenue from sales taxes the indians have to pay just like anybody else when they buy something. even their booze is taxed.
  5. You have to buy shit to be taxed.

    Now show us how much those Indians are spending.
  6. Savant


    Fixed that for ya. This one's on the house. :D

  7. Ricter


    This is why I believe you are one of bugscoe's alts, that's one of his favorite tactics. Pure laziness.

    Anyway, mathematically speaking, some state is bound to be lowest, if only by pennies. Why are you so "excited" that it's SD?
  8. Why haven't you contacted the moderator yet?

    He has the long form BC if you really want the truth.
  9. Savant


    Well I do believe that this makes the 4th unique "alt" accusation in the last week.

    In any case, I wouldn't describe my demeanor as "excited". I was pointing out agenda driven fallacious bullshit. Perhaps debunking agenda driven bullshit makes me "excited".

  10. Ricter


    So what is the US Census Bureau's agenda in ranking states by per capita taxation?
    #10     Apr 26, 2011