Help BJ name referred law 14…

SDDP Chairman BJ Nesselhuf

I happened to notice that BJ Nesselhuf, Chair of the South Dakota Democratic Party, is asking people to help him come up with a clever title for “Referred Law 14.” Opponents of Gov. Daugaard’s Large Project Development Fund legislation (HB 1230) don’t believe it is an effective way for the state to increase economic development and revenue in the state.

The large-project development fund is set to take effect in 2013 and will give grants to local and out-of-state businesses building a project of $5 million or more.

The money comes from taking 22 percent of the contractors’ excise tax. The other 78 percent goes into the general fund.

Democrats say the money would be better spent on education. Supporters say the fund is an important tool for luring businesses to the state.

Obviously the Democrats have overlooked the fact that if South Dakota is able to increase economic development in our state, we will also increase the revenues our state collects in taxes and fees, which will also increase our ability to spend on education.

So what would you suggest Nesselhuf’s pet name should be for this issue? Please don’t hold back — Chairman Nesselhuf wants to know your opinions…

35 Replies to “Help BJ name referred law 14…”

  1. grudznick

    The other money grab from the greedy assed school districts that already can make their money and don’t need to take it from old people like me?

    I tell you that I will be out as much as I can telling voters at breakfast to pound down anything that young Mr. Nesselhuff or the schools are pushing.

    It hurts old people like me.

  2. caheidelberger

    Obviously, Bill/Hans, you have overlooked the fact that you are a Republican who believes the government should not be picking winners in the marketplace and that the free market can take care of itself. Let’s call it the “Call the Republican Bluff” Referendum.

    1. Smurfette

      Cory,

      Unlike Obama Daugaard’s intentions aren’t to attempt to pick losers like Solyndra and funnel Government money into it.

      Daugaard wants to go out and find already successful businesses and encourage them to relocate to South Dakota or expand by building a factory in SD. Very little risk in this but a lot of reward once the industry is investing here also.

  3. Anonymous

    Unfortunately, in the real world, small states like SD must find ways to lure businesses in if we want to expand our economic base. Rather than continually finding more ways to divide up the existing income, all South Dakotans are better served by increasing state revenues. More businesses adding value to South Dakota products will benefit education more than squeezing existing businesses.

    South Dakota must compete with incentives offered by other states if we are going to bring in new businesses. So long as decisions are based on our state’s best economic interests and not campaign donations and political agendas (see Solyndra, et al), the project development fund seems like it could be a good idea. Government should not be picking winners and losers – only winners based on the numbers. No more propping up the losers.

    1. caheidelberger

      Propaganda from corporate welfare seekers. The Toyota lottery doesn’t work. We do better to invest in local entrepreneurship instead of trying to attract a handful of footloose businesses who will pull up stakes at the promise of the next best government handout.

        1. Job Creator

          Bit different issue since South Dakota still has the kindest usury laws in the country. In that regard, we are keeping much of that business here. Check it out – every other bit of business Citi does that they can conduct from somewhere else, they are doing. Change the usury laws and they’ll be gone.

  4. HB 1230 vs Farm Subsidies

    HB 1230 goes out and lures already successful businesses to come to SD and allows for SD to rake in taxes off of that business. This encourages success.

    Farm Subsidies – encourage farmers to lose money in order to get farm subsidies. continuous handouts from the fed. Government controls what farmers can or cannot plant based on subsidies available…

    one encourages success the other encourages dependency.

  5. CaveMan

    Let’s see here. The relevance of BJ and the Democrat party in SD has been resoundingly alluded to in the last two election cycles therefore the tax and spend bills they are touting today have great hopes for passing? If you disagree with BJ and the Democrats you are against kids and older folks and education. And of course business can take care of itself and we will all prosper by taking more from the private sector and handing it over to the public sector.

    Pavlov proved that if enough of a given stimuli is provided to dogs while they are fed they will salivate at the sound of the stimuli before they see or smell any food. Somehow the liberal tax and spenders have created a stimuli in certain groups of people making them think that there is some truth to the “Free Lunch” concept. But the realists know that someone always has to pay for even a free cup of coffee.

    The last two election cycles in South Dakota prove that a majority of citizens who vote in our state understand what working for a paycheck means.

    What the Dems and BJ should be pushing are bills taking the initiative away from the GOP. Having unemployment recipients to work somewhere while they receive their checks from business owners. Or somehow come up with a fuel tax which actually makes sense and funds our highway infrastructure at all fuel costs instead of the dwindling of funds whenever fuel costs rise. Or come up with an actual property tax which works and not one we have today with the wheels coming off fast. Think sale price for five years and then average accounting. The way it was before the Janklow administration routed common sense and gave land barons huge tax breaks.

    But in all reality we only see money for education; which is great, but without jobs for our graduates what genius plan takes money from the people so other states get superbly educated workers from South Dakota?

  6. Rumor

    How about Politics before Jobs or BJ’s Big Adventure. Better yet, ‘ No Need for a Penny, we’ll Go After Denny’

  7. Name

    Cory, you are wrong. This isn’t welfare. This is SD refunding to the company a PORTION of a tax THE COMPANY is paying. That’s not welfare. Welfare is giving people money that isn’t theirs. Referred law 14 instead gives the companies back some of their own money as they are creating SD jobs.

    1. Anonymous

      but if it’s going to a company from outside of the state…isn’t that a redistribution of South Dakota corporate wealth and taxes?

  8. Anonymous

    Let’s call it the “Stop Corporate Welfare” referendum.

    The Governor’s plan is to take a whopping 22% of revenue from the contractor’s excise tax and give it to corporations. This is corporate welfare by any definition – including Name’s definition.

    If SD has the lowest cost of doing business already, including: no corporate or personal income tax, low wages, hard-working employees, low work comp rates, low insurance rates, low land costs, low utility costs – then why must SD throw cash at corporations to do what is already in their best interest to do without free-money welfare payments? If we have a better product to offer, why must we pay corporations to take it?

    1. Les

      Right wrong or otherwise, we are in a time of extreme competition and doing what it takes to bring in business will take more extreme measures as this recession plays on.

      If they (corps) were pounding on our doors it might be a little different. Darn sure better in my mind than disguising a sales tax as a school kid/grandpa fund taking more than they already are from us.

  9. Brandon Lindstrom

    Government is the single worst investor in the country. It invests for a political return, not an economic return.

    This is crony capitalism. It doesn’t matter whether it’s Obama wasting money with Solyndra or Daugaard making a fund available here, or an ethanol plant getting subsidies. Let the free market be free so it can work. It doesn’t pick winners and losers, it lets good ideas flourish while the bad ones fail.

    1. Anonymous

      3 years from now IF the press does its job we will see some Solyndra-style debacles as a result of this slush fund scheme. The press ought to report on some of the results (good and bad) of existing grant/loan programs.

      It’s too bad Joel Dykstra didn’t put up more of a fight for senate, or I have a feeling we would have heard more about one of the collosal failures that frittered away taxpayer money. It’s not too late for investigative journalism.

    2. Name

      Brandon, this isn’t government investment. This is reducing the company’s effective taxation rate. It is their tax bill that is being partially rebated. That seems very different than Solyndra. What did Solyndra pay in taxes? Very close to nothing, I’d guess.

  10. Anonymous

    “Take from to poor, give to the rich”.

    After all the school administrators in SD average over $65,000 per year. That is more than 97% of all the other earners, including the legal profession. Teachers earn an average of over $37,000 per year and that is more than 75% of the earners.

  11. Duh

    DUH (hence my tag/moniker) – Investment in solid companies that create jobs, increase tax revenue which filters down to those hapless 9 month a year educators. This state is small and watches its purse and the SDGOED is as tight with money as a farmer. Very few bad bets in SDGOED.

    1. Anonymous

      How is their track record? Guessing you have the info. What has their ROI been and how many jobs have they brought in over the past 5 years? I’m sure there have been some bets that didn’t pay off, but overall guessing they have brought in some good high paying ($20 per/hour)jobs.

      Where did you get your breakout on this DUH?

  12. Anonymous

    Keep bringing those 8 dollar jobs here and keep exporting our youth.Name the bill We came to die not to buy.

  13. feasant

    Lets name the bill “We don’t want growth in SD.”

    You liberals keep bringing up $8 /hour jobs. The liberals are the ones who shut down Big Stone II, Basin Electric in Walworth County and Hyperion. Those are well paying jobs and will continue to be good jobs for the future.

  14. Anonymous

    How much did Gateway 2000 get from state gov? They stayed until they ran out of ability to attract good people who were able to compete with other people doing the same upgrades and do more things. The problem was people did not want to live in SD because of no outstanding museums, entertainment, etc. Now before you blow up with expressions of hate please be aware that this info is based on what I was told by people in power in Pierre and I have no facts to support this only what power in Pierre had to say.

  15. Anonymous

    I always find Dud so sarcactic.Ups pays their drivers over 30 dollars an hour plus benefits, and they made 1 billion last quarter, wow did you know they were union. lets see right wingers pay a worker that and show them profits, plus retirement and health care and profitabilty just love when you guys pay low wages.Did i say skilled.

  16. Anonymous

    Feasant remember your motto came to die not to buy.Good campaign slogan for you wingers.EXPORT OUR KIDS OUT OF TOWN AWESOME.