I’m started to wonder if people in Pierre are getting up on the crazy side of bed some days.
SENATE JOINT RESOLUTION NO. 2
Introduced by: Senators Hunhoff (Bernie), Parsley, Peterson (Jim), and Rampelberg and Representatives Brunner and Feickert
A JOINT RESOLUTION, Proposing and submitting to the electors at the next general election a new section to Article XI of the Constitution of the State of South Dakota, relating to the imposition of a corporate income tax and dedication of the revenue therefrom.
BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF SOUTH DAKOTA, THE SENATE CONCURRING THEREIN:
Section 1. That at the next general election held in the state, the following amendment to Article XI of the Constitution of the State of South Dakota, as set forth in section 2 of this Joint Resolution, which is hereby agreed to, shall be submitted to the electors of the state for approval.
Section 2. That Article XI of the Constitution of the State of South Dakota, be amended by adding a NEW SECTION to read as follows:
§ 16. The Legislature shall impose a corporate income tax. However, this section does not apply to any for-profit educational institution or any insurance company subject to a tax on gross premiums or financial institution subject to the bank franchise tax. The revenue and interest generated by the tax, less the cost of administration, is dedicated for the purpose of providing property tax relief. The rate of taxation imposed on corporate income shall be an amount not to exceed six percent of the federal taxable income. The Legislature may exempt an amount of federal taxable income not to exceed two hundred fifty thousand dollars from the tax imposed by this section.
I really can’t say that I’ve heard a hue and cry across the land for people to place a corporate income tax on businesses, including family farms who have incorporated.
I’m even more shocked to see a couple of Republicans on the measure. You expect this kind of silliness from the Democrats. But the Republicans? This is the kind of bill that is used to crucify politicians.
I would think they’d know better.
Because the US has the highest corporate tax rate (plus double taxation when the income is distributed to stockholders) in the developed world, multi-national companies are avoiding US taxation with such focus even liberal Democrats and Obama are seeing the need for some type of “break” for them to bring those profits back to the US.
Because the US has the highest corporate tax rate (plus double taxation when the income is distributed to stockholders) in the developed world, the C-Corp is disappearing as a legal entity (so is the S-Corp) for organization business. Now even publicly traded US companies are organizing as Limited Liability Companies or Limited Liability Partnerships.
It won’t be long until there is no corporations left to tax so this argument will be moot. We will either have LLC’s/LLP’s or overseas corporations un-taxed in the US.
Besides being a targeted tax at a form of business organization that is dying, it specifically targets legacy businesses while their newer competitors are untaxed. Talk about picking losers and winners.
More importantly by selective taxation, it incentivizes a conversion to LLP’s or LLC’s which not only will reduce tax revenues, we lose a valuable form of business organization. Whether one is a socialist liberal needing to harangue against “corporate America” or a capitalist wanting an efficient vehicle for raising capital for business ventures, we all lose because there is no form of organization with greater effieciency and transparency.
This is just another Bernie Sanders-like proposal from yesterday devoid of the realities of the world today.
I do believe all of the concepts you’ve introduced for your post.
They are really convincing and will certainly work. Still, the posts are very
brief for newbies. May just you please lengthen them a bit
from next time? Thanks for the post.