By information from the governor's office, Republican South Dakota Governor Kristi Noem, who is running for reelection in the midterm elections this November, has announced that she will do away with the state's sales tax on all food and grocery items purchased in the state.
"Because of the actions of Vice President Biden, families all around South Dakota are having a hard time making ends meet, which is a direct result of growing inflation. Because of the failure of his liberal agenda, the cost of food has skyrocketed, and family finances are being stretched to their breaking point. "Wednesday in Rapid City, South Dakota, was when Noem announced the new tax cut.
Noem has stated that this permanent tax cut will result in an increase of hundreds of dollars in the savings account of the typical South Dakota household.
Noem stated that the current state of the economy was one of the contributing elements that played a role in her decision to decrease taxes.
"South Dakotans put in much effort. They get up every morning and work hard to care for their families. Still, the policies of the Biden Administration are eroding their capacity to provide for their children's nutritional needs. The growing cost of food and petrol makes life difficult for people, including retirees, working parents, and single mothers. South Dakota will continue to do the right thing and protect our people from a White House that is heading in the wrong direction, "Noem stated.
According to the governor's office, Noem's decision to give up the authority to collect the sales tax on groceries will result in a tax cut for South Dakota residents of $100 million.
The most recent report from the Consumer Price Index (CPI) showed that inflation increased to 8.3% in August, up from 8.2% in July and reaching a 40-year high of 9.1% in June. The previous record for inflation was 9.1%, reached in June. According to the statement, which referred to research conducted by the Federal Reserve Bank of St. Louis, "The price of a pound of ground beef has climbed by a quarter of its previous level ever since President Joe Biden assumed office. A gallon of milk now costs 20% more than it did previously. Over the past year, the cost of a dozen eggs has skyrocketed by an astounding 113%."
Since Governor Noem assumed office, her office has brought attention to the significant increase in the average salary in South Dakota.
"Over the previous three years, the median household income in South Dakota has increased by 21%, the greatest growth rate in the nation. A surplus of $115.5 million was recorded for the South Dakota budget for the fiscal year 2022. Sales taxes grew by 12%. The emergency fund for the state reached a total of 422.6 million dollars, which represents 20.5% of the whole budget for the state, "according to the press statement issued by Noem's office.
After being elected as South Dakota's governor in 2019, Kristi Noem will be running for reelection this fall to maintain her position as the state's chief executive for a further term of four years.