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Where Does South Dakota Rank on Economic Freedom?

Apr 25, 2018 by AFP

Good news for South Dakota! Its economic outlook is improving thanks to pro-growth policies such as spending and taxing less, reducing regulation and limiting government.

Every year the American Legislative Exchange Council releases a report measuring states against each other on economic freedom and outlook.

This year, South Dakota jumped three places, landing within the top 10 states for best economic outlook at number nine.

Nine is a solid ranking, but we can do better. In 2014, South Dakota ranked second!

We lost that spot when the state began raising taxes. That’s proof that a strong economy and bright future are linked to lower taxes.

South Dakota can get back at the top of the list. Here’s how:

  • Don’t repeat the mistake of increasing sales taxes. Keeping tax rates low is the key to strong economic growth.
  • Enact a strong tax expenditure limit. South Dakota puts limits on local tax hikes, but we also need limits for state government taxing and spending.
  • Review current property tax rates. Those can be lowered too!

Utah is a great example of the success that follows lower property and sales taxes. It’s been ranked number one in economic outlook for the last seven years. When comparing the numbers on economic growth we see that Utah has lower property tax burdens and lower sales tax burdens. Utah is also a right to work state like South Dakota, so it affords its people more freedom. Lower taxes mean more money for workers and that means a stronger economy. Plain and simple.

If we moved up three spots this year, we can move up three (or more!) next year. Tell your lawmaker to support pro-growth policies in South Dakota such as lower taxes, fewer regulations and less bureaucratic red tape!