Tax Reform is Already Working for South Dakotans
By Sen. John Thune

The Tax Cuts and Jobs Act, which became law just before the beginning of the new year, is already working for South Dakotans and the rest of the American people. When we were debating it in Congress – myself, as a member of the tax-writing Senate Finance Committee and the conference committee that negotiated the final tax bill – I repeatedly laid out the reasons why I thought it was the right policy and the right time to pursue it. The results are starting to speak for themselves.

Exactly two weeks after this historic legislation became law, businesses from coast to coast announced they were awarding bonuses to more than 1 million workers, cumulatively, as a direct result of pro-growth tax reform. With Walmart’s recent announcement that it will be raising wages, offering bonuses, and expanding other benefits for its employees, including more than 5,300 in South Dakota, that number has already grown to more than 2 million.

From a story right in our own backyard, Great Western Bank, which is based in Sioux Falls and has branches throughout South Dakota and eight other states around the country, recently announced that it will be raising wages, offering bonuses, and enhancing employee health care offerings as a result of tax reform. In the announcement, the chairman of Great Western Bancorp said, “We want to kick off 2018 by investing in our people and communities.”

The end-of-year announcement by Molded Fiber Glass (MFG) that it will keep its doors open longer than expected was welcome news for its employees and the entire Aberdeen community. Since tax reform maintained existing law as it related to the Production Tax Credit, something I strongly advocated for throughout the tax reform debate, a substantial order was placed that will keep operations going and give MFG additional time to explore other partnerships.

This is all good news, but it’s only the beginning. Since the Tax Cuts and Jobs Act lowered rates for all taxpayers in 2018, workers will soon see their paychecks go up, too. The government’s new payroll withholding tables were just released, and the U.S. Department of the Treasury expects nine out of 10 workers will see larger paychecks starting in February.

And when taxpayers file their 2018 tax returns next year, middle-income South Dakotans will feel the benefits of a doubled child tax credit and a doubled standard deduction (which, for example, means a married couple filing jointly will not pay taxes on the first $24,000 of their income).

The fundamental difference throughout this tax reform debate was that Republicans believe Americans know better than the federal government how to spend their hard-earned money. Our votes on the Tax Cuts and Jobs Act reflected that belief. Democrats believe the federal government and its bureaucrats know more about your bottom line and can spend your money better than you can. Unfortunately, their votes on the tax reform bill reflected that belief.

I helped write the Tax Cuts and Jobs Act, and voting for it will be one of the most memorable moments during my time in Congress. I strongly believe that by supporting this bill, Republicans stood on the right side of history, and I’m glad the American people are already reaping the benefits from it.     

###

Priorities for Rural America in 2018
By U.S. Sen. Mike Rounds (R-S.D.)

Recently in Congress, we’ve been successful in undoing burdensome regulations put in place during the previous administration, providing tax relief for American families and businesses and strengthening our armed forces. We have also worked to relieve local financial institutions from regulations that hindered their ability to best serve their customers. As we begin this new year, we hope to build on those successes and focus on growing our economy, especially in rural areas.

Rural South Dakotans are feeling the effects of the recent downturn in the ag economy. As I’ve written about a number of times, free and fair trade is vital to the agriculture industry in South Dakota. Fortifying our existing trade relationships and identifying new markets for our crops and products will benefit our producers. Additionally, a strong farm bill that adequately supports the federal crop insurance program and increases the cap for Conservation Reserve Program (CRP) acres is vital to helping the ag economy recover from its recent recession.

Another component to strengthening rural America that has recently received attention is the importance of increasing access to high speed internet in rural areas. Broadband connects us to the world, and it’s important that we bridge the digital gap to provide rural communities with access to the same information as the rest of the country. High speed internet access can help students learn, which will give them better opportunities for a brighter future. It can help businesses expand by allowing them to participate in the modern economy, hire more employees and increase wages.

South Dakota has long been at the forefront in this arena, as we led the nation in connecting classrooms to the internet. While I was working as governor, South Dakota became one of the first states to join the Partnership for 21st Century Skills’ State Leadership Initiative, an effort to help our young people be competitive in an increasingly technological world.

The president recently signed two executive orders to provide broader and faster internet coverage. The first order instructs the Department of Interior to allocate resources for rural broadband installation. The other order requires agencies to use standardized forms and contracts to make the installation process as efficient as possible. Additionally, discussions are underway regarding an infrastructure bill that, in addition to improving roads and bridges, will encourage the development of new wireless towers near rural communities. I look forward to working with my colleagues to continue to cut down on roadblocks so we can bring faster, stronger and even better broadband to rural South Dakota.

South Dakota is a rural state and agriculture is our top industry. Our thousands of farmers and ranchers play an important role in feeding and fueling the rest of the world. In addition to a strong farm bill, increased trade opportunities and fewer burdensome regulations, access to high speed internet is important for them to run their businesses and increase productivity.

The U.S. economy is making a comeback. We need to make sure that the economy in rural America is growing right along with it. I’ll continue working in the Senate to create a friendly business environment so companies are encouraged and incentivized to expand into rural areas, and access to high speed internet is an important component of that.

###

A Thin Blue Line
By Rep. Kristi Noem

A lot is asked from our law enforcement officers, especially at a time when crime is on the rise. Sadly, South Dakota’s violent crime rate nearly doubled between 2005 and 2015. If you look at domestic aggravated assault cases alone, police handled 129 in 2012. By 2016, they dealt with 276 cases. Drugs are also on our streets in increasing quantities, ripping families and friendships apart in many cases. Still, South Dakota’s brave law enforcement officers step up to meet the needs of our communities each and every day. And I, for one, am incredibly grateful.

January 9 marked National Law Enforcement Appreciation Day, and while many South Dakotans recognize the tremendous role officers play throughout the year, it is nice to set aside a special day of gratitude.

Like many in South Dakota, I have been thrilled to see President Trump make law enforcement a priority again and am proud to help drive his agenda in the House.

Weeks after President Trump took the Oath of Office, for instance, the House passed the American Law Enforcement Heroes Act, which would allow Community Oriented Policing Services (COPS) grants to be used for hiring and training law enforcement officers. This is a critical program, and over the last five years, South Dakota has received $13 million in COPS grants.

To give law enforcement added support in the fight against drugs, I helped pass the Transnational Drug Trafficking Act, which broadened the scope of people subject to criminal prosecution for drug trafficking. I also voted for the Comprehensive Addition and Recovery Act to enhance coordination between criminal justice, substance abuse agencies, and first responders. Both bills became law and are in addition to the work I’ve done to strengthen our border security.

Additionally, I’m working to help law enforcement in indirect ways. For instance, the CUFF Act, which I introduced, prohibits individuals with outstanding felony warrants or parole violations from receiving certain Social Security benefits. Hardworking taxpayers should not have to pay people who are fleeing from the law. Not only is it unfair to ask taxpayers to do so, it’s self-defeating to subsidize someone’s attempt to shirk law enforcement. As Staci Ackerman, Executive Director of the South Dakota Sheriffs’ Association said, the bill would “limit [a wanted felon or parole violator’s] ability to avoid justice using taxpayer dollars to evade capture.” This bill was passed in the House and is awaiting a vote in the Senate.

The Thin Blue Line Act was another bill I’m proud to support. In 2016, more than 110 law enforcement officers were killed in line-of-duty incidents, according to the FBI. Of these more than 60 died as a result of felonious acts. Another 57,000 officers were victims of line-of-duty assaults. This cannot be tolerated. The Thin Blue Line Act would make targeting or killing a police officer or first responder a determining factor in potential death penalty cases. Moreover, we passed, and President Trump signed, the Public Safety Officer’s Benefits Improvement Act, which aimed to reduce the backlog of families waiting on approval for survivor benefits.

While I don’t know what it’s like to be in their shoes, I’m hopeful the choices I’ve made better equip law enforcement as they carry out their day-to-day duties. Thank you to all who serve and create that critical blue line that keeps our families and communities safe.

The Workforce Relay
A column by Gov. Dennis Daugaard: 

The legislative session commenced on Jan. 9 with my final State of the State Address.

I began my speech by talking about workforce, which will be a focus in my last year as governor.

From the perspective of businesses and employers, our state does not have enough workers in many skilled fields. This is a barrier to economic growth.  We have companies that do not expand, or that turn away business, because they cannot hire enough skilled workers to do the work.

To help with this demand for workers, I am bringing legislation this session to create an interstate licensure compact. Professional licensure standards can hurt the economy by creating a barrier to entering many professions.  Licensure can also make it difficult for professionals to move, because each state has its own licensure requirements.  Clearly, professional licensure plays an important role in protecting the public – no one wants to be operated on by an unlicensed doctor or have one’s house wired by an unlicensed electrician. But we must be sure that licensure isn’t used to keep qualified workers out of the market.

I reached out to the governors of North Dakota, Montana, Wyoming and Colorado, and all expressed an interest in a reciprocity compact for professional licensure. The idea is simple: if already licensed in one state, a professional can move to another member state and practice for eighteen months – enough time to earn a license in that state if one chooses to do so. The hope is that a number of western states will establish this compact, which then can spread to other states.

In large part, workforce is an issue relating to education. Our students should receive an education that allows them to find well-paying, fulfilling jobs, here in South Dakota. Fortunately, we are making headway in this area through programs like the Build Dakota scholarship, dual credit and the recently announced partnership with Southeast Tech and Dakota State University to create high-tech apprenticeship opportunities.

We are also taking steps through an effort we are calling “Career Launch,” which expands the availability of work-based education experiences, such as apprenticeships, internships or job shadowing during high school. The best way for young people to find career fields they like – or don’t like – is to experience them.

For example, in Yankton, many high school seniors plan their schedules so that their traditional classes are compressed into half a day – morning or afternoon. During the other half of the day, the student works at a paid internship with an employer in town.  The student receives high school credit, is paid at least $11 an hour, gains exposure to a career field, and learns the foundational skills – like how to arrive on time, dress appropriately and interact with customers and coworkers. This month, we are piloting Career Launch with the Sioux Falls, Rapid City, Yankton and Brookings school districts. We hope to expand this effort in the future to more districts.

I’ve often said over the years that workforce is a marathon, not a sprint. Now, as I enter my final year in office, I am coming to see that it is in fact a relay race. Our predecessors dealt with this issue. Over the past seven years, we have initiated strategies to address it. Some have worked, some haven’t, and some remain to be seen.

Next year, I will pass the baton to my successor, and I hope the next governor will continue to evaluate these strategies, and to try new approaches, so that we continue to make progress.

-30-

In a Facebook post shared last night, State Senator Neal Tapio named the Republican Speaker of the House, State Representative Mark Mickelson, as one of his critics within the State Legislature.

Tapio indicated that the Speaker has refused to discuss the issue of Islamic refugees and Sharia law when approached as not “an important issue.”

We should suspend all immigration and refugee resettlement until we can isolate the source of the hate. We must have a very honest dialogue as a nation about the global war on terror carried out by Islamic terrorists who believe in the full implementation of sharia law. Anyone who resorts to name-calling those American patriots who dare discuss this issue in public as racists, extremists, xenophobes or Islamophobes simply do not understand the seriousness of the threat, or worse. Fortunately, a large majority of South Dakotans that voted for Donald Trump can see right through the political game of ostracizing and marginalizing those of us who vow to no longer avoid this issue.

On a related note, a packing plant in South Dakota, which currently employs over 400 Somali Muslims, actively recruits from the Somali community in Minnesota.

Does 50 Somali ISIS sympathizers, coming from a population of 100,000 Somalis in Minnesota, indicate a statistically significant number?

I think it does.

With that information, why does the South Dakota Speaker of the House repeatedly refuse to discuss this issue with me, saying that, “of the 80 most important issues facing South Dakota, my little ‘Muslim issue‘ doesn’t even make the list!”

Mr. Speaker, this isn’t my issue. This is the most important issue facing the freedom-loving world.

President Trump has the courage to face this issue. Many of our highest South Dakota elected leaders, have in the past, mocked him for his directness, when he said, “we need to figure out what the hell is going on.”

Some South Dakota political leaders still privately mock our President for his efforts to keep America safe from radical Islamic terrorism.

South Dakota legislators will have the opportunity to reconsider their support for President Trump and his effort to keep our country safe from radical Islamic terrorism. Those that fail to recognize the threat ‘shall’ be exposed.

Do you agree with the South Dakota Speaker of the House when he says this isn’t an issue our state government should address?

I don’t.

Read that all here.

What do you think? And is this posturing in the Congressional race costing Tapio political capital he could be using to accomplish his legislative goals for Watertown during session?

The floor is yours.

The Watertown Public Opinion has harsh words this weekend for the State Senator representing that town, as they go after their State Senator Neal Tapio:

Republicans Don Brosz, Lee Schoenbeck, Ried Holien and Democrat Nancy Turbak, regardless of their ideologies, had several things in common. They were intelligent, thoughtful and well-regarded.

And…

That changed with the election of Sen. Neal Tapio in 2016.

And…

While there always are legislators who occupy the fringes of reality, Watertown rarely sends one who will be as ineffective as Tapio will be this year.

And…

Most South Dakotans embrace anyone with the fortitude to live here. We see the good in people.

If on occasion, we elect someone who cannot see the good, we correct the mistake at the next ballot box.

Read it here.

Ouch!

From Bob Mercer’s column, former Republican House Majority Leader Brian Gosch is back in Pierre this session:

We haven’t crossed paths yet, but former Rep. Brian Gosch seems to have returned as a lobbyist for the 2018 session.

He formally registered to represent the National Rifle Association.

Read it here

Facebook South Dakota humor page Dakota Posts recently took a poke at State Senator Stace Nelson, referring back to 2014 when he was holed up in the men’s room, and by all accounts was not willing to come out and cast a vote against a gun bill…

It was posted a couple of days ago, and let’s just say after he got ahold of it this morning, Senator Nelson was not appreciative of the humor, as evidenced by the comment section of the cartoon:

And in the case of one long-time Republican activist, Senator Nelson has spent the day getting downright testy with him:

and it continued…

and it continued….

And I’m sure it’s continuing now as I write.

Maybe it’s just me, but I’ve always thought that the people elected to office were supposed to be of sound temperament, and in Pierre to represent their District as the best of their fellow man.  It’s possible we’re not supposed to be questioning why a State Senator is calling people ‘snowflake’ and ‘dumbass’ and attacking their wife and otherwise angrily sparring with people on Facebook starting at about midnight – 1 AM in the morning, and continuing for the next 19-20 hours.

I could be wrong, and that’s just how they talk in church down in District 19. And it gets really bad if you forget to bring a dish to the potluck.  That’s not how they do things in my neighborhood, but that might just be the gold standard in that part of the state.

So, District 19, here’s the tail end of week one of your State Senator representing you in Pierre.

It’s going to be a long session.

Noem Statement on Supreme Court Reviewing Online Sales Tax Collection

WASHINGTON, D.C. – Rep. Kristi Noem today issued the following statement, after the Supreme Court’s announcement that it will review South Dakota’s case regarding online sales tax collection:

“In the wake of today’s announcement, the need for legislative action on e-fairness is more urgent than ever before. If the Supreme Court rules in South Dakota’s favor, it could become a marketplace free-for-all. A South Dakota small business, for instance, could be forced to comply with 1,000 different tax structures nationwide without the tools necessary to do so. My legislation provides a necessary fix.

“The reality is that brick-and-mortar retailers, which provide thousands of jobs in our hometowns, have been closing at an alarming rate. State and local governments are similarly imperiled. Facing budget crises due to out-of-state retailers avoiding sales tax collection, states and localities are forced to raise taxes or consider levying new taxes, even after dramatically reducing spending. My legislation would remove the out-of-state retailer’s competitive advantage and level the playing field for our Main Street businesses. Moreover, it would protect small businesses and citizens alike from aggressive audits by out-of-state governments. The time for action is now.”

In 1992, the Supreme Court ruled inQuill v. North Dakota that states were prohibited from collecting sales taxes from out-of-state online retailers. Individuals were still liable to pay the tax, but it would not be collected at the point of sale. If South Dakota’s case is successful in the U.S. Supreme Court, Quill v. North Dakota will be overturned. As a result, businesses could be immediately responsible for collecting sales taxes from buyers and then remitting it to states. To add to the confusion, this requirement would be determined state-by-state. There would be no infrastructure in place to facilitate these transactions, however, potentially causing a free-for-all.

To put it in perspective, there are more than 1,000 different tax structures nationwide. A small business in South Dakota would need to be able to comply with each of them to sell nationwide – and they’d be subject to audits in each of these jurisdictions. There is software that can help figure these tax rates out, but the business is still liable if mistakes are made and that software could be cost prohibitive for smaller businesses.

Avoiding this free-for-all has been a focus of Rep. Noem’s since she was first elected, and she’s introduced legislation to manage the transition while protecting South Dakota small businesses. More specifically, H.R.2193, the Remote Transactions Parity Act, would:

• Allow states to require remote sellers to collect sales tax from the buyer, according to the taxes owed in the buyer’s location. (essentially legislatively reversing Quill v. North Dakota)
• Require states to provide software (free of charge) to businesses located within their borders. This software would be capable of figuring the buyer’s tax rate.
• The businesses using this software would be largely protected from audit. Instead, it is the software provider that is subject to audits.
• The legislation includes a phase-in period to ensure businesses have time to comply.

###

Candidate for South Dakota Attorney General John Fitzgerald released a campaign video to Facebook today in support of his candidacy: