Revenue to end the food tax
See "A 'real' apple pie graph of SD budget" in the PDF section of this website.

The State's food tax is 4%. Cities have rates up to 2%. Thus, the rate in most of the state is 6%.

Times are tough for many families. Food prices are high.
The state could help by ending the taxing of groceries.

Even withoug tapping any reserves, the state could end the cruel food tax.

With about one-half percent added to non-food sales, all the tax could come off food.
This would cover all state food tax revenue, AND the cities and tribes could be fully reimbursed for their loss of food tax.
In other words, for NO COST to the state, cities or tribes, the whole food tax could be ended by this session of the state legislature.

This tax shift would be revenue-neutral for public funds, yet would make South Dakota's tax structure less regressive. Althougth the impact of sales tax is never felt equally, the tax burden will move up the income scale.

In this proposal the sales tax would remain on pop and candy, while it comes off other food.

"Determine that the thing can and shall be done, and then we shall find the way."
Abraham Lincoln


1/25/14