Rotarians Beat Glenn Beck and Jon Hunter!
With Senate Bill 167, Republican-of-convenience Eldon Nygaard intended to repeal the exemption membership organizations currently enjoy from South Dakota's sales tax. But evidently you don't mess with the Rotary. Last Wednesday, Senate Taxation hoghoused SB 167 to instead repeal the sales tax exemptions on coins, currency and bullion, as well as on ink and newsprint used to print shoppers' guides.
My neighbor and longtime public servant Gerry Lange first pointed out to me the absurdity of South Dakota's taxing food but not gold. We added this exemption on the coin and ingot business in 2007 (see Rep. Gordon Pederson's HB 1151).
Zach Lautenschlager was on hand to represent his fellow Glenn Beck devotees in opposition to infringing on the Tea Party's liberty to drive up gold prices with apocalyptic paranoia. Lautenschlager also argued with a straight face that many people who are struggling to make ends meet are big gold investors. (I take the Gerry Lange line that folks who are struggling to make ends meet are probably bigger investors in food.)
Dave Bordewyk of the South Dakota Newspaper Association was also able to pivot and speak against the ink and newsprint tax hike, saying that closing this exemption would raise the cost of printing the Peach. Bordewyk also expressed the reasonable criticism that his publishers deserve a chance to study this proposal and present their assessment of the full cost of this action rather than rushing it through with a surprise hoghouse. Senator Nygaard dismissed Bordewyk's testimony by saying the SDNA represents only 160 newspapers, while Nygaard represents 800,000 taxpayers. Senator Jim Hundstad also noted that shoppers guides go out free to consumers, so the consumer doesn't see any direct hit from this tax boost.
The original hoghouse considered tacking gross receipts and excise taxes on storage units, but the committee amended out those sections to avoid another tussle with the South Dakota Supreme Court.
Senator Nygaard said closing these exemptions may raise $100,000 on the precious metal sales and another $100,000 on shoppers' guide production. That's three fewer professors SDSU would have to can!
Senate Taxation passed the bill 4--3. It now goes to the full Senate, which will have to consider whether closing an exemption is the same as raising taxes and thus would provoke Governor Daugaard's "No New Taxes" veto pen.
I love the whole gold-mania thing. The hilarity of it is that being able to use it depends on the US economy coming to an end, and the world turning into Cormac McCarthy's "The Road". Until then, try taking your gold ingot down to Sunshine Foods and see what happens. Or the gas station. Or Pamida. They want currency, a debit card, or a credit card. You want a real hedge against inflation? Put a huge tank in your back yard and buy gas.
I've seen the movie version of The Road. Gold bars would only slow you down as you run from cannibals.
Having a bit of money in gold does make me feel like I could bribe someone to fly me to Canada if there's suddenly a Tea Party takeover or something. Would it really work? Who knows. It helps me sleep a little better at night ;)
Hedging gold is comical. Just look at the run up. Scarcity hasn't increased. Just perceived value due to scare mongering.
$200,000 would save THREE university professors jobs?? Seriously THREE--if Pam Homan makes $181,000 before benefits--what are they doing teaching at the University level?
Regardless of the level, teachers make next to nothing while administrators take home the big bucks.
Kelsey, you're exactly right: all the money is in administration. Here in town, the business administrator at the high school - Pat Callies - is the LOWEST PAID ADMINISTRATOR in the district, and she is making more than any teacher, including teachers who have worked there for 30 years. And yet it's teachers who are always expected to take the hit.
Who is Pat Callies?
Sorry, I meant Cindy Callies. The retiring business manager, who makes $59,948 a year, and that is the LOWEST administrator salary. And yet, no teacher makes more than she does, even after 30 years. Nothing against Cindy Callies personally at all - it's just that's the way the salaries go.