Rich sheltering dough in South Dakota

Rich sheltering dough in South Dakota

South Dakota flagWhen Proposition 30 was being pitched in the fall of 2012, Gov. Jerry Brown and others pooh-poohed the idea that rich folks would find ways to avoid its $7 billion in new taxes. Because the national and state economies have been growing, and the Prop. 30 money has been flowing in, it seems as if Brown and the other were right.

Except that rich folks keep finding ways to shelter their money from the tax gremlins. Bloomberg reports:

Among the nation’s billionaires, one of the most sought-after pieces of real estate right now is a quiet storefront in Sioux Falls, South Dakota.

A branch of Chicago’s Pritzker family rents space here, down the hall from the Minnesota clan that controls the Radisson hotel chain, and other rooms held by Miami and Hong Kong money.

Don’t look for any heiresses in this former five-and-dime. Most days, the small offices that represent these families are shut. Even empty, they provide their owners with an important asset: a South Dakota address for their trust funds.

In the past four years, the amount of money administered by South Dakota trust companies like these has tripled to $121 billion, almost all of it from out of state. The families needn’t actually move to South Dakota, or deposit their money at a local bank, or even touch down in the private jet. Little more than renting an address in Sioux Falls is required to take advantage of South Dakota’s tax-friendly trust laws.

The Pritzker family, by the way, are liberal Democrats who have been big supporters of the Clintons and President Obama. Hillary grew up in a Chicago suburb; and the president, of course, moved to the Windy City and his political base still is there.

But the Pritzkers and other rich liberal Democrats are smart enough not to pay the high taxes they favor politically. You get rich and stay rich by being savvy, not stupid.

For regular people, all that money from rich people flowing in to South Dakota, and the Mount Rushmore State’s reputation as business friendly, also are paying off. South Dakota’s unemployment rate is just 3.6 percent for November, second best only after North Dakota’s 2.6 percent.

That South Dakota 3.6 percent rate also is less than half California’s 8.5 percent rate.

6 comments

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  1. LetitCollapse
    LetitCollapse 30 December, 2013, 13:26

    Well, I guess South Dakota is better than in secret offshore accounts where many of them store their loot and get away with it, thanks to the influence of the international banksters associations that do the bidding for their rich friends. At least in South Dakota some tax must be paid in return for the fairy tales lives the billionaires live.

    For every dollar in tax that a billionaire fails to pay, a peasant must make up for it.

    Reply this comment
  2. Queeg
    Queeg 30 December, 2013, 17:31

    Do you really believe the dung your write?

    Reply this comment
    • LetitCollapse
      LetitCollapse 30 December, 2013, 20:59

      You must be in a deep coma when it comes to the news if you aren’t aware of all the American wealth evading the IRS in offshore financial accounts. lol. Your one liners tell me a lot. lol.

      Reply this comment
  3. Queeg
    Queeg 31 December, 2013, 10:20

    Collapso…..good…..short and sweet.

    I got a tetanus shot in 2013 to fend off the slashing cuts from CWD generic doomers!

    Reply this comment
    • LetitCollapse
      LetitCollapse 31 December, 2013, 14:03

      Do you ever comment on the news or is your specialty confined to one-liners that target other posters?

      Reply this comment
  4. Queeg
    Queeg 1 January, 2014, 01:33

    My speciality is wearing out posters ranting utter nonsense no one cares about ….it’s futile being constantly unhappy and trying to improperly influence fragile doomers.

    The sky is not falling……California is a great place…..there are few unhappy people in California.

    Teddy, SeeSaw and Ulysses are voices for fair and balance…..

    Reply this comment

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Tags assigned to this article:
Jerry BrownJohn SeilerProp. 30Pritzker

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