Press "Enter" to skip to content

Lederman: Taxes Create Jobs, Stimulate Economy, Help Business Survive!

Perry Groten asked Senator Dan Lederman on last night's Inside KELOLand to discuss the significance of the transportation bills before the South Dakota Legislature.

The flauntingly conservative Republican PACker from Dakota Dunes proceeded to destroy every anti-tax, anti-stimulus argument ever:

This is the first time in sixteen years that we've addressed transportation funding, so it's a conversation that's been long in the running, that we need to have. It's a tough decision, because when you're talking about increasing taxes, people's pocketbooks are going to be affected and it's a very serious discussion.

But it also has some good upsides, because we're looking at being able to improve those roads. Even though the tax dollars come out of the economy, they do go back in when we start talking about the contractors, the materials, and the work that will be done over the next few years.

So it's actually a pretty big impact for the economy, and it's a great impact for our farms and for our businesses that need to use those infrastructures to be able to get their product to market [Senator Dan Lederman, Inside KELOLand, 2015.02.15, timestamp 8:30].

Translation: taxes don't make money disappear from the economy. They go right back into the economy to buy things, boost the economy, and invest in the public goods the free market needs to survive.

Barack Obama, Robert Reich, and I couldn't have said it better ourselves. Thanks, Dan! We'll keep that lucid defense of the upsides of increasing taxes for public investment handy for the next time Grover Norquist comes peddling his pledge.


  1. Disgusted Dakotan 2015.02.16

    Said no conservative Republican ever.

    Wasn't Lederman a long time Iowa Democrat who wanted to get elected so he moved just across the border into SD and registered as a Republican?

  2. caheidelberger Post author | 2015.02.16

    Hey, DD, Lederman trumpets his conservative values with his Rushmore PAC. I'm just calling it like I see it. Evidently, Lederman has decided there's no sense in fighting the budget war, since Democrats win on balanced budgets and sensible investment in public goods, so he's going to just wave the God and guns banner.

    So take economic arguments off the table. Even Lederman agrees that taxes paying for infrastructure stimulate the economy.

  3. MC 2015.02.16

    This is the way is suppose to work.

    Have a project that befits the majority, like roads.
    Get a number of how much it is going to cost to build it
    Get a number of how much it is going to cost to maintain it.
    Raise the funds to build it. (taxes, donations, bake sales, whatever)
    develop a reasonable plan to have the funds available to maintain it, like user fees or wheel taxes.

    It not that we are opposed to raising taxes. We just want to make sure the money raised gets to where is it supposed to go, and everyone can enjoy the benefits.

  4. Disgusted Dakotan 2015.02.16

    @CAH Lederman beat Ann Tornberg by claiming to be a conservative and using his Bosworth raffle skills to deprive willing conservatives across the nation of their money by claiming to be one of them. This is what is killing the Democrats. These fake Republicans get into office by fooling the voters into thinking they are actually conservative limited government Republicans and then they resort to their actual ways. Democrats are conflicted in going after Lederman for being a fake because he is saying what they believe in. Republicans lose because Lederman betrays Republican principles and he dumbs down the brand. Democrats lose because even though Lederman used to be one of them, and supports their tax and spend ideas, his loyalty is to himself and those that he thinks can expand his political influence, which he does not believe is the SDDP. Unlike the pure Democrats who advocate taxing and spending for the common people, the establishment crony "Republicans" like Lederman support spending that puts $$ into lobbyists that will return some of that $$ back (Have you seen the ads flooding the internet advocating for the tax increase? Look at all the supporters signed up on it)

    @MC With all respect.. No, this is NOT the way it is supposed to work. Former Democrat political opportunists like Lederman claim to be "limited government conservative Republicans" to fool the voters into electing them. Then? They vote to increase state spending/government which takes away tax revenues from important infrastructure (education, roads, etc.). After increasing state government and spending those tax revenues on "economic development" (FYI which is the antithesis of free market Republicanism) they then must raise taxes to feed the increased government that they built.

  5. larry kurtz 2015.02.16

    Lederman bought another election? What a surprise! He's a committed earth hater and Zionist whose gauges are irreparably broken.

    South Dakota: Land of Infinite Villainy.

  6. Nick Nemec 2015.02.16

    There is no such thing as a free market Republican. Republicans just support spending tax dollars in a way that helps line the pockets of their campaign contributors. To claim Lederman is anything than what he is (average Republican) is willfully ignorant of the facts.

  7. Paul Seamans 2015.02.16

    Dan Lederman will probably retract this statement or claim he misspoke himself.

  8. mike from iowa 2015.02.16

    Sounds like a flaming libbie in skunks clothing.

  9. Disgusted Dakotan 2015.02.16

    @Nick Nemec I will admit they are few and far between, that doesn't mean there isn't any. I'll remind you there have been several conservatives who have opposed the the GOP political machine over the years. They did so at their own peril and to their detriment. not recognizing the differences is as ignorant as misguided conservatives calling these frauds "Liberals." We need to all recognize them for what they are, political opportunists. They are what is wrong with politics. They betray your views and views on the Right.

    You and I can have honest disagreements and still respect each other despite those chasms of ideology. The Lederman's of this world say and do what ever they think advances their personal cause and they have no loyalty to party or ideology.

  10. larry kurtz 2015.02.16

    Lederman and Betty Olson carry guns into the Statehouse: who else?

  11. larry kurtz 2015.02.16

    Lance Russell, Verchio, Tieszen, Scott Craig: who else?

  12. larry kurtz 2015.02.16


  13. Owen 2015.02.16

    Believing Lederman and the Democrats are the say is BS.
    This is the kind of garbage that the far right spews and they do it well enough that the people seem to believe. But it's just not true

  14. Owen 2015.02.16

    meant to say the "same" not say

  15. Nick Nemec 2015.02.16

    DD, when Republicans like Lederman are, even by your own admission, more common than not, they become the norm of the Republican Party.

    Who would you consider an example of an elected Republican that doesn't fit this mold? I'm thinking maybe Stace Nelson, he and I might disagree on some issues but there were things we agreed on and we weren't to admit agreement or disagreement.

  16. Disgusted Dakotan 2015.02.16

    @Owen who said Lederman was the same?

  17. Disgusted Dakotan 2015.02.16

    @Nick Nemec I agree the political opportunist like Lederman are the norm amongst elected "Republicans." The GOP base is not. That's why these charlatans campaign so hard claiming they are conservatives. Yeah, Russell, Nelson, maybe a couple more. I think this bitterness of everything Republican by the hard core Left base is poisonous to your efforts to elect Democrats. Democratic candidates have to attract Republican voters if they ever hope to get elected in many parts of SD. Your base needs to differentiate who your real enemies are and it isn't the average Republican voter.

  18. Deb Geelsdottir 2015.02.16

    DD made a good point: "Your base needs to differentiate who your real enemies are and it isn't the average Republican voter."

    And that is very difficult, in large part due to Republican citizens themselves. They are the ones who vote in those Republican candidates who do not truly represent their constituents. Republican voters urgently need to become more discerning and critical of their own candidates.

    How can Democrats tell the True Republican (?) voters from the tea bagger types? Election results don't indicate anything other than extreme righties satisfied with a corrupt and non responsive government.

  19. Disgusted Dakotan 2015.02.16

    @Deb Voters are inundated with information, very little of it helps them determine these politicians actual voting records. These politicians do everything possible to hide their records. Remember how the establishment cronies went after those Republicans that dared to put out "report cards" showing how the legislators voted? Even though it was there actual records, the establishment cronies attacked the people who put out the records and intimidated them into stopping. Frankly, it's not the "tea bagger" section of the GOP that is your nemesis. The political opportunist like Lederman are.

  20. mike from iowa 2015.02.16

    Doesn't seem to be any connection to iowa Dems and Lederman that I can find.

  21. Disgusted Dakotan 2015.02.16

    You want to know why Lederman is singing the tax and spend song? Scroll down to the all-star list of special interests that are pushing for the tax increase:

    @MFI Check voter registration from when Lederman lived in Iowa. His family and he were long time Democrats. Now? He's a self-serving political opportunist and a bane to actual Republicans and Democrats.

  22. larry kurtz 2015.02.16

    Stace Nelson should primary Kristi, init?

  23. leslie 2015.02.16

    dd, i dont trust you are a democrat. you are inconsistent and annoy me with some part of every one of your posts. you want us to bring over core, base, normal, tea baggers to our side, while staying away from the poisonous far left?

    you "want to have honest disagreements and still respect one another"? you don't want us to say anything to offend, yet know the difference between "republican opportunists and the other few and far between"?

    what is it you are really trying to accomplish here? you have something personal with turncoat lederman? please tell us what is killing the democrats.

    are you a conservative republican?

  24. grudznick 2015.02.16

    Init indeed, Mr. kurtz. Mr. Nelson should definitely run against Ms. Noem.

  25. Disgusted Dakotan 2015.02.16

    @Leslie I'm just a spectator. I'm conservative. I enjoy civil, intelligent, discussion. Like many people, I see the problems in SD. I believe much of it is because our two party system is broken. Take my posts or leave them. Not looking for a fight. Just observations and musings. One of the benefits of posting under a pen name is its not personal.

  26. Deb Geelsdottir 2015.02.16

    Yes DD, I'm very clear about the lies and distortions proffered by the political elites, most of whom are not elected. I'm speaking of the Kochs, Dick Armey, Sheldon Adelstein, Grover Norquist, the Waltons, ExxonMobil, Citibank, JP Morgan, etc.

  27. Deb Geelsdottir 2015.02.16

    DD and everyone. I also share the frustration, anger, and perhaps fear engendered by a government that has moved from republic to oligarchy. The good news is that it can be returned to a functional, democratic type.

  28. caheidelberger Post author | 2015.02.16

    MC, I think Senator Vehle has followed your criteria pretty well. He even pre-compromised, proposing only $100M in increased taxes instead of the $240M in need the interim committee identified. He must have done a good job, because now even conservative Norquist pledgers like Lederman are acceding to the logic of the plan... even if they are scaling it even further back to Governor Daugaard's inadequate, timid plan.

  29. caheidelberger Post author | 2015.02.16

    DD can holler all night, but as far as a majority of South Dakota voters and certainly South Dakota Republicans are concerned, Lederman is the SDGOP. If Dennis Daugaard, Tim Rave, and the rest of the leadership want to say otherwise, I invite them to do so.

    But until that joyful day, Lederman and the GOP own this statement in favor of taxes and stimulus. I will accept no retraction. I will gleefully cite this passage every time I hear some Republican spouting Randian nonsense about taxation being evil, about stimulus not working, and about government getting in the way of the free market.

  30. Roger Elgersma 2015.02.16

    Money spent has a multiplier effect. If you take taxes from individuals and corporations, what ever multiplier effect their spending had is reduced. What ever multiplier effect the government spending has is an increase in the economy.
    One of the lowest multiplier effects is military spending. If you build a bomb it either sits there doing nothing or it destroys something. If you spend money on a roadgrader, it builds and maintains a road that many people use and make more money. Money spent on social programs goes right back into the economy. Money spent on education makes many people more productive.
    Of course each time a dollar is spent or taxed, it must be done for what is necessary and not just to spend money to boost the economy. This was G W Bush's mistake. He wanted to make credit easy to that people could spend their borrowed money to boost his economy rather than the government spend it. This resulted in a lot of people losing their homes because the common person could only borrow against their house. Any time spending is done by borrowing rather than taxing or from profits, there is a long term negative since future funds will have to be used to pay for current expenses and spending. That future repayment will reduce the money multiplier in the future since it will then be money taken out of the economy which should of still been available for spending then. Reagan was a great communicator since he convinced people that lowering income could balance the budget which we have seldom done since. He fooled us all, or at least a large enough majority to get elected. We thought we are such a great country that we could get by without paying our bills.

  31. Disgusted Dakotan 2015.02.16

    @CAH Imagine a world where the Democrats are fully in power in SD but the politicians are all former lifelong Republicans who mouthed the words you believe in to get elected, but work with the minority conservatives against your beliefs and ideology. Would hard core Democrats embrace such selfserving cowbirds and hail them as good Democrats and stellar examples of your beliefs? We both know the answer as evident from criticism of actual devout Democrats like Sen Parsley. Bizzaro world honest Steve Sibson turned selfserving politician feigning to be a liberal Democrat would never be hailed as a Democrat. While I understand the mirth you enjoy at seeing such cowbirds in your opponents' nest, such enjoyment comes at a high price for us all.

  32. CLCJM 2015.02.17

    It's hard to believe that any Republicans really believe in their own rhetoric. I think the only thing thy believe in is whatever lines they're own pockets and they will even sell out their own interests if they are being promised some kind of reward by the Koch brothers, et al.

  33. mike from iowa 2015.02.17

    DD-you got your birds mixed up. Wingnuts are Cuckoos. They are lazy,without a work ethic and only want to spend time and resources on themselves. They lay one fertilized egg in a Marsh Wren nest and as soon as it hatches it immediately,instinctively pushes all other eggs/hatchlings out of the nest so Ma and Pa Liberal Wren spend all their time attending the needs of a foster child who is several times larger than they are before it can fly. They work their fannies to the bone trying to keep up with an insatiable appetite of one who doesn't even say thank you before flying off to perpetuate its own instinct to survive by foisting all responsiblity on someone elses back.

  34. leslie 2015.02.17

    this reminds me of when madville trashed corrina early in her campaign

  35. caheidelberger Post author | 2015.02.17

    Leslie: "this" what—DD's attack on Lederman's bona fides? My latching onto Lederman's words and using them against his party's rhetoric? And when did I "trash" Robinson "early" in her campaign? Please elaborate.

  36. MC 2015.02.17

    in this case what the Honorable Mr. Lederman said is right. no one really like paying taxes, however that money is supposed to go support everyone.

    Where we run in to problems is when money that promised never makes it to the intended project. video lottery was suppose to help schools. I can't say for sure all the money is getting there.

  37. Disgusted Dakotan 2015.02.17

    @MC Please explain the difference between tax, spend, and create more government moderate Republicans, and Democrats. So called "Republicans" have exploded SD budgeted spending over the last 14 years. Up till the end of the campaign last year? Daugaard & Co. were crowing how great our state and roads were. This is a case where they have spent the taxes we pay in for infrastructure (roads, education, etc) on no-bid contracts for their cronies, "economic development," etc. and not on education and roads. Here is your blue ribbon panel of experts who want more tax revenue:

    The only difference between tax and spend "Republicans" and Democrats? Democrats are honest and increase government to "help" people. These fake "Republicans" increase government for their cronies.

  38. leslie 2015.02.17

    since the election didn't go well , there is the typical human perverse need to scapegoat. the actors are, for example-dd, grudz, les, barry, troy, teiszen, a few others. they don't know who they are, but what ever fragile democratic organization we have been able to hold onto, they have a need to dance on bodies. into that mix has come SDP, we have long discussions on what "liberal, progressive, neo, pot, medical, recreational, ect." mean to one another, and who is hip, glib, who facebooks, carries, who is literate, who is naive, insured, has money, and who is courageous, a cowboy, a coward, a patriot, a racist. and who has 250,000 votes state-wide and who has only 175,000.

    what gets damaged as a result of the bullies of the state, are fragile democratic organizations and democratic candidates.

  39. MC 2015.02.17

    First, let’s get rid of the R’s and the D’s.
    We had good roads. However because of the rail card shortage, elevators have been shipping that grain out by truck, plus many of our roads and bridges are reaching end of life. Some the roads are not that good any more
    Since the fuel tax was implemented, vehicles have become more efficient. They pay less tax per mile. The cost for maintaining those roads have gone up. That means there is less money to pay for more maintenance.
    It makes sense for our state to get the best product for the price (not the cheapest, we have learned that lesson) Sometimes it means a bidding process, sometime it is simply better to go with someone who is known to do a good job.
    Because the railroad isn’t stepping up, and we don’t have an adequate water transportation system in place, that leaves our highways to move the economy.
    However there has to be a balance.
    DD, Your hatred for Republicans because they are Republicans, I find very distasteful, even for an enlighten Democrats. I will at least listen to your argument why we need to spend $387,000 to study the effects of Swedish massages on rabbits.

  40. Disgusted Dakotan 2015.02.17

    @MC you suffer from the same two dimensional political understanding that many fall prey to of D vs R. The reality is that politics are much more complicated.

    I fully believe in Republican principles. What we have in SD is not a Republican majority. If we had true limited government Republicans? We wouldn't have had state budgets and government constantly growing requiring more and more tax/fee revenues.

    These fake Republicans defeat Democrats by labeling them tax & spenders and claiming to be limited government Republicans. The reality is they tax, spend, and create more government to facilitate "economic development" and other UnRepublican agendas. Since when has government involvement in the free market been a Republican idea? Kind of runs contrary to actual Republican limited government and free market principles, doesn't it? Just because you slap a Chevy logo on a Yugo, it doesn't make a Yugo a Camaro.

  41. larry kurtz 2015.02.17

    Stace should primary Noem since she's deserted the Teabaggers who brung her.

  42. mike from iowa 2015.02.17

    How many studies do you need to see the waste in two illegal wars? Besides the fact they were fought on credit and totally mismanaged,no oversight on spending,the dead weren't allowed to be honored on return, the sheer number of casualties on all sides,the total lack of planning for after the conflict,the total disdain for the needs of those wounded and traumatised by war and the famous quote of dumbass dubya- 41. "Oh, no, we're not going to have any casualties." --discussing the Iraq war with Christian Coalition founder Pat Robertson in 2003, as quoted by Robertson

  43. bearcreekbat 2015.02.17

    mfi - I just finished Woodward's "The War Within." If his writing is accurate President Bush was more interested in getting body counts of Iraq people so he could be assured that our troops were fighting hard enough. He apparently complained frequently when the military did not provide a nice high number of dead Iraqis that he could use to justify the frequent reports of American soldiers being killed.

    There was plenty of oversight and expert opinion, but according to Woodward, President Bush was not interested in hearing these reports. He is reported to have frequently become impatient at briefings, telling the experts to hurry it up, with the comment that "This is not my first rodeo." I wonder if Bush picked that up from Dr. Phil or vice versa?

    Sometimes I wonder if some of our current politicians who deny evolution or man made climate change are simply following in Bush's footsteps by denying science or any information contrary to their preconceived notions of what the base wants them to say.

  44. mike from iowa 2015.02.17

    The Short but Happy Political Life of George W. Bush. Ivins says Bush is one of the luckiest politicians she has known and that he has considerable political skills. But, she writes, "from the record, it appears he doesn't know much, doesn't do much and doesn't care much about governing."

    I believe this was written before dumbass dubya was appointed Potus. If I ever grow up i could only dream about being as witty as Molly Ivins.

  45. bearcreekbat 2015.02.17

    mfi - Molly was one of my heroines! She could almost always get a big smile or two out me with her wonderful writing and analytical skills.

  46. mike from iowa 2015.02.17

    Senators voted recently 98-0 that climate change is real. Now we both know that many of them don't believe it is real. They were voting to cover their asses next election.

  47. mike from iowa 2015.02.17

    Molly passed relatively young after only doing good things. We are still stuck with Kissinger,Rumsfeld,Cheney,a couple of Bushes and who knows how many evil chicken hawks that don't ever seem to age.

  48. Deb Geelsdottir 2015.02.17

    DD said, "fake Republicans defeat Democrats by labeling them tax & spenders and claiming to be limited government Republicans"

    I agree. The Eisenhower Republican has mostly disappeared and that's been very bad news for the US of A. The Republican leadership, and a good chunk of the elected rank and file, are simply soulless greedy buggers who crave power and money.

    As Doug Wiken said a few years ago, these Republicans are the "borrow and squander" type.

  49. leslie 2015.02.17

    i meant daniel, not barry.

Comments are closed.