South Dakota is a funny state boasting one of the most regressive tax systems (maybe the most) in the country. State government is financed primarily through property and sales taxes.
Let's do a hypothetical illustration...beginning with Sally, who is a neurosurgeon at the top of her profession. Imagine that she makes a million dollars a year, which is possible. What does she pay in state tax. That depends, if she lives in a luxury rental condo she may have very little property tax to pay. She's so dedicated to medicine that she works an average of seventy hours a week. With that schedule she doesn't buy very much so pays little in sales tax...her million is hardly taxed by S.D.
Then there's George, a middle-aged farmer. He owns a relatively modest 1000 acres but it is good farmland. Guessing at his property taxes based on the property tax I pay he likely pays about $75,000. a year. On years when commodity prices are poor, or crops aren't good, he still pays 75K even if he isn't making a profit. To add insult to injury he has to pay sales or excise taxes on equipment he buys. This equipment is necessary to his operation.
Now here's the kicker! South Dakota state government is controlled by farmers...they are doing it to themselves! Go figure! This came to mind as I prepare to mail the second installment, due in May and October, of my property taxes.
Takk for alt,
Al
No comments:
Post a Comment