Why GRT Beats Corporate Income Tax

April 18, 2025
Seal SD Liberty

Q&A: Why GRT Beats Corporate Income Tax for South Dakota

What’s a positive talking point for GRT vs. Corporate Income Tax?

A standout advantage of the SEAL SD Liberty GRT over a corporate income tax is its fairness and simplicity—putting money back in your pocket without punishing success. Here’s why it shines:

  • Broad-Based Relief: The GRT at 2.5% raises $1.8 billion state-wide, eliminating $1.6 billion in property taxes (April 15, 2025, 20:21). Unlike a corporate income tax, which taxes profits (often 5-9% in states like California or New York, draining business earnings), the GRT taxes gross receipts, spreading the load across all businesses—even those with thin margins—saving you $3,000-$5,000 yearly in Rapid City (Q1, April 15, 2025, 20:31).
  • Growth-Friendly: A corporate income tax discourages investment by taxing profits, potentially driving businesses away—look at states like Illinois losing companies to tax havens (a trend noted in business migration studies, though not directly cited here). The GRT, with exemptions for businesses under $100,000 (39,150 entities), fuels growth, adding $10M-$15M in Rapid City sales (April 15, 2025, 20:31), boosting jobs without penalizing success.
  • Local Control: The GRT keeps funds local—Rapid City’s $116.1M GRT stays in the community (April 15, 2025, 20:31)—while corporate income tax revenue often funnels to state capitals, reducing local say. This aligns with South Dakota’s liberty values (April 15, 2025, 21:22).
  • Critical Edge: Corporate income taxes rely on profit reporting, which can be gamed with loopholes—think offshore accounts or deductions. The GRT’s flat rate on gross receipts is harder to dodge, ensuring stable revenue for schools ($960M) and services, not bloated bureaucracies (April 15, 2025, 20:46).

How does this benefit South Dakotans?

This talking point means more economic freedom for you. The GRT slashes your property tax burden, supports local businesses without taxing their profits into oblivion, and keeps control in your hands—$1.6 billion stays with South Dakotans, not some distant tax collector (April 15, 2025, 21:26). It’s a win for liberty, not a corporate handout!

Join us April 19, 2025, at 2:00 PM at First Assembly of God in Rapid City to see this in action!