The Dakota Dividend
A data-driven economic plan to lower the cost of living for 99% of South Dakotans.
THE PROBLEM: THE FAIRNESS GAP
South Dakota currently has the 6th most unfair tax system in America. While our poorest neighbors pay an average effective rate of 11.3%, the top 1% pay only 2.6%.
Because we refuse to fix this imbalance, we lack the revenue to compete with neighboring states. The result? We export our skilled workers to Minnesota and Iowa, draining our local economy.
THE PROPOSAL: A 3-TIERED FAIRNESS TAX
This plan only affects income above that threshold.
TIER 1
$300k - $600k
TIER 2
$601k - $1M
TIER 3
$1 Million
REAL LIFE IMPACT
Most politicians hide the math. We are showing it. Here is exactly what different South Dakotans would pay under The Dakota Dividend.
The Brookings Teacher
Annual Income: $58,000The Result: Pays $0 in new taxes. Saves ~$400/yr from the grocery tax repeal.
The "Boom Year" Rancher
Avg. 3-Year Income: $210,000The Protection: Using "Income Averaging," their taxable average stays under $300k. They pay nothing.
The Sioux Falls Surgeon
Annual Income: $350,000The Result: An effective tax rate of just 0.8%. Still far lower than MN or IA income taxes.
The Out-of-State CEO
Annual Income: $2 MillionFUNDING OUR FUTURE ($580M - $710M REVENUE)
OPTION 1: THE SKILLED WORKER SAVER
- Teacher Pay Regional Parity $135M
- Eliminate the Grocery Tax $105M
- Universal Free School Meals $45M
- Childcare Cost Cap $150M
- TOTAL INVESTED: ~$435M
Impact: Moves South Dakota from 49th to the top tier of regional teacher pay, stopping the export of our graduates to MN and IA.
OPTION 2: HEALTHCARE & COST CRUSHER
- Property Tax Relief (20-30% Cut) $300M
- Rural Hospital Stabilization $100M
- Senior Care Guarantee $100M
- TOTAL INVESTED: ~$500M
Impact: Protects our closing nursing homes and keeps rural ERs from "death by spreadsheet" budget cuts.
OPTION 3: THE RUSHMORE LEGACY FUND
- Permanent Education Trust $300M/yr
- Statewide Broadband Expansion Variable
- Career & Tech Ed (Trades) Variable
- ANNUAL INVESTMENT: $300M+
The Strategy: Invest 50% of the revenue into a permanent endowment. In 15 years, this fund could grow to $6-8 Billion, generating enough interest to fund our entire Department of Education forever.
Fact Checking the Numbers
Yes. NEA data ranks South Dakota near the bottom for teacher pay. When a graduate earns $16k more just by driving 45 minutes east, it’s not a lack of loyalty—it’s a lack of competitive infrastructure that forces our skilled workers to leave the state.
Bills like HB 1056 attempt intrusive oversight of what you buy at the grocery store. Our plan does the opposite: it eliminates the grocery tax for everyone, providing $105M in direct relief and protecting your freedom to choose what's on your table.
On the contrary, it saves it. While Pierre hoards a surplus, Medicaid rates for nursing homes often fall $40+ short per resident per day. We use this revenue to bridge that gap and prevent "death by spreadsheet" closures of rural ERs.
No. 80.4% of SD businesses have fewer than 9 employees. The average owner making $120k/yr pays $0 under this plan. By eliminating sales and property taxes, we lower their overhead and increase local spending power.
This is a myth. A Cornell University study found only about 2.4% of millionaires move to avoid taxes. High earners are typically tethered to their local businesses, land, and community networks—they won't uproot over a fair-share fee on income above $300k.
Yes. According to ITEP data, 99.1% of South Dakotans earn less than this threshold. This ensures that teachers, nurses, and ag workers see an immediate increase in net take-home pay through tax relief.
Absolutely. Statewide feedback shows healthcare access is a primary concern. By replacing outdated pipeline debates with a focus on stabilizing rural hospitals, we address the actual needs of District 7.
The plan is inclusive of all South Dakota graduates. By creating a loan forgiveness program and freezing tuition, we incentivize our skilled workers to build their lives here rather than exporting their talents elsewhere.
Defending neighbors from corporate overreach is a core value, but legislative shifts like SB 201 have changed the landscape. We pivot toward urgent healthcare and education crises while maintaining a hard line against eminent domain for private profit.
Implementation requires a vote of the people via Ballot Initiative or Legislative Amendment. This is a direct exercise of democratic power to restore integrity to a system where the establishment has ignored voter-backed mandates.