It isn’t “new” news, but the Governor was joined by at least one Legislator in criticizing voters for rejecting referred law 14.
Voters understood clearly that this was bad law. It proposed to take taxes collected from small businesses and give it to big businesses chosen by the Governor. That is the Governor’s version of economic development. It follows the Obama model. We all know how well that is working out for us!
South Dakota voters said no to Obama. They also said no to Governor Daugaard’s proposed tax law. That has Legislators, like Rep. Mike Verchio, upset with voters.
In response to Rep. Verchio’s criticism, Florence Thompson wrote this letter:
It is too bad Representative Verchio criticized the voters for rejecting Referred Law 14, which would have established a new Large Project Development Fund. Apparently the Voters have other priorities for their hard-earned dollars.
This approximately $17 million per year represented a huge increase over the old program of $4 million, which was repealed amid criticism. The new law would have taken money out of the General Fund, by way of the Contractor’s Excise Tax, giving an unelected board almost unfettered discretion in doling out millions of dollars to whatever companies they want. This type of Big Government, Crony Capitalism scheme has worked out so well at the Federal level; can you say, “Solyndra” ?
If Representative Verchio wants to help construction and economic development in South Dakota, he could propose eliminating the Contractors Excise Tax. This tax drives up the cost of construction and puts South Dakota as a competitive disadvantage with surrounding states.
Rather than the State Government meddling in private business, picking winners and losers, that same money would be used for other purposes if it is left in the hands of the people who earned it. The more money taxed out of the private sector, the bigger the government grows, while the people are made poorer. The more the government “Planners” plan, the less the people are able to plan for themselves. As President Reagan often said, “Government is not the solution; government is the problem.”
Well said, Florence!
***Gordon Howie is a nationally syndicated author, host of Liberty Today TV and CEO of Life and Liberty Media***
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I was on the Rapid City planning commission for approximately 5 years. During that period I saw many requests come through for Tax Increment Financing (TIF). This was intended to allow for cleanup and reuse of “blighted” areas and worked well to help cleanup the meat packing plant after it burned down. Unfortunately, TIFs have been used for new projects like Walmart, Rushmore Crossing, Cabela’s and several other commercial enterprises. This type of Corporate Welfare creates an uneven playing field for those businesses that already exist. Having government involved in commercial enterprise in my opinion is almost always a bad idea. I’m glad the voters of South Dakota were smart enough to see past the smoked glass and mirrors of referred law 14!
They(we know better than you “leaders”) take “heat” from time to time for “no-bid” contracts, this is/was just a way to sidestep that whole set of criticisms. Just like the SD tourism contract ( I forget the name) that spawned IM-10 I believe 2 years ago. They should just call it the “tax payer money for my friends fund”