LESS Corporate Welfare, LESS Tax
Will Governor Rhoden lead by example?
We agree with Governor Rhoden that a sales tax is a much fairer method of taxation than property tax. We also appreciate that Governor Rhoden is interested in pushing decision making to the local level rather than mandating from the state.
These are wise steps in the right direction.
However, we continue to be concerned with the corporate welfare programs that are lining the pockets of a few people and putting our citizens under financial pressure.
The corporate welfare problem starts in the Governor’s Office of Economic Development and is supported by community Economic Development programs across the state. These offices are tasked with using tax dollars to bring new business to South Dakota. The problem is South Dakota is close to full employment. This means there are not enough people to fill the existing jobs and the new jobs created with the taxpayer funded incentives.
So yes, the Economic Development offices in our state are using tax dollars to create a worker shortage.
When the economic development offices are successful in attracting companies to South Dakota the companies start screaming about not having enough workers. In response, the Governor and our DC representatives sign deals to bring in foreign workers and refugees.
These foreign workers and refugees lower wages by increasing the labor supply and reducing labor mobility (it is nearly impossible for foreign workers to change jobs). When wages drop or remain stagnant and real inflation continues to escalate at 9-14% per year, the foreign workers and citizens are put under economic pressure. Citizens who were above the poverty line, drop below. And foreign workers, often start below the poverty point when their family members are included in the equation.
When this happens, the social programs kick in - indigent medical care, low income housing, food stamps, and subsidized transportation. All these programs are supported by the taxpayers. To make matters worse, children of foreign workers often do not have a command of English and most are way below grade level. These students overload the school system, take resources from citizens, and increase the overall per student cost.
So in addition to putting citizens and foreign workers in poverty, we are also increasing the tax burden for the rest of the citizens in the state.
As a result, Governor Rhoden we are hoping you will lead by example. Close the Office of Economic Development (Office of Corporate Welfare). Opt out of the foreign refugee program. And require every company that employs foreign or refugee workers to cover the full cost of the employee including indigent medical care, low income housing, food stamps, and subsidized transportation as well as any specialized public educational programs their children require.
P.S. One of the readers brought up Tax Incentive Financing (TIF). This strange construct is corporate welfare and a huge burden on the taxpayers. Hopefully Governor Rhoden can work with the legislature to get rid of this wealth transfer program as well.
South Dakota Voices Response: Nathan, thank you for joining the conversation. Perhaps I did not convey the problem clearly. The issue is corporations are taking advantage of the foreign workers and the taxpayers. In the past corporations were required to cover the full cost of foreign workers that they brought into the country including housing, food, transportation, medical care, etc. Today, corporations are bringing these workers in without covering anything, depressing wages for everyone, and transferring the costs associated with paying lower than survival wages to the taxpayers. This is not good for anyone other than the corporation. The foreign worker is basically an indentured servant, because he/she cannot change jobs and keep his/her visa (a kind of modern day slavery). Citizens who were above the poverty line are now below the poverty line because of depressed wages (stagnant wages are depressed wages with a real inflation of 8-14% -- what we have been seeing since the late 1990s, shadowstats.com discusses the adjustment that Michael Boskin made to hide the real inflation numbers) and the everyone else has a higher tax burden to cover the people that can't make it on their own. About the religious element, I am not aware of any religion that suggests we should be putting people into a quasi-slavery (indentured servitude) situation or allowing a few people to take advantage of others under the guise of something good.
Email comment from NO: "I would recommend you drop your Eurocentric views towards how refugees are a problem. How many South Dakotans originated from immigrants that came to this country to work and make a better living. This country was built on the backs of immigrants/slaves. So, for you to all of a sudden want to turn your backs on the things that allowed you to be here (or is the reason you are here) seems to be a little hypocritical. If you want to want to attack how cooperations, for hundreds of years, have been using government to financial line their pockets, while creating work force insecurity, then that is a talk that needs to be had. However, don’t try to hide your libertarian/nationalist views in there to drum support for the ongoing victimization of immigrants, who only want a better life. Most of the time fleeing from situations that were created by the United States backing of dictatorships in the 50’s-90’s, all in the name of capitalism. Your solutions only promote a culturalist/nationalist view that, if you are a religious person of any sort, flies in the face of your makers teachings. "
If this goes away what will happen to the Bill Zortman show? That is the majority of his guests and show content coming from this government grift.