Today, Governor Kristi Noem promised South Dakota families the largest tax cut in South Dakota history: eliminating the sales tax on groceries. She made the announcement at Dakota Butcher in Rapid City, surrounded by parents and their children.
"I have seen families across South Dakota struggling to make ends meet with rising inflation because of President Biden's policies. His failed liberal agenda has caused the cost of food to skyrocket, and family budgets are being stretched thin," said Governor Kristi Noem. "This permanent tax cut will put hundreds of dollars in the pockets of the average South Dakota family."
Eliminating the grocery sales tax reduces the tax burden on South Dakotans by $100 million.
"South Dakotans work hard. They get up every day and provide for their families, but the Biden Administration's policies are destroying their ability to feed their children. Senior citizens, working parents, and single moms are all struggling with rising food and gas prices. South Dakota will continue to do the right thing and protect our people from a disastrous White House," continued Governor Noem.
Prices have skyrocketed at grocery stores. Since President Joe Biden took office, the price of a pound of ground beef has increased 25%. The price of a gallon of milk has increased 20%. The price of a dozen eggs has increased a whopping 113%. These data points are according to the Federal Reserve Bank of St. Louis.
Because of Governor Noem's approach, South Dakota has the strongest economy in the country, and tax revenues have been the strongest in the state's history. South Dakotans' incomes have grown by 21% in the past 3 years, the highest in the nation. South Dakota's budget surplus for the 2022 budget year was $115.5 million. Sales taxes grew by 12%. The state's rainy-day fund grew to $422.6 million, 20.5% of the state's budget.