⚖️ FairTax vs. Core GRT Plan: A Tax Reform Comparison

🏛️ SEAL SD Examines Federal vs. State Solutions

At SealSD.com, we’re committed to helping South Dakotans understand their tax reform options at both the state and federal levels. The Core GRT Plan, part of the Maximum Liberty Plan (Plan 2), replaces all state taxes with a single 5% Gross Receipts Tax (GRT), generating $3.6 billion and saving you $3,000–$5,000 annually by eliminating property taxes. The FairTax, a federal proposal, aims to replace all federal income taxes with a 23% national retail sales tax, leaving state taxes unchanged. This page compares the FairTax with the Core GRT Plan, focusing on their tax structures, financial impacts, and alignment with liberty-based principles, so you can see why the Core GRT Plan is the better choice for South Dakota’s tax freedom.

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🔍 Tax Structure: How They Differ

The Core GRT Plan and the FairTax operate at different levels of government with distinct approaches to taxation:

• Core GRT Plan: A state-level initiative that replaces all South Dakota state taxes—sales taxes ($2.097 billion), property taxes ($1.6 billion), and other fees ($628.2 million)—with a single 5% GRT on business revenue ($72 billion base), generating $3.6 billion. Property taxes are eliminated entirely, and the GRT is paid by businesses, often lowering consumer costs through a pass-through (e.g., $1.00 on a $40 purchase vs. $2.60 sales tax) [Memory: April 16, 2025, 15:19].
• FairTax: A federal proposal to replace all federal income taxes (personal, corporate, payroll, and estate taxes) with a 23% national retail sales tax (inclusive rate, equivalent to 30% exclusive) on new goods and services. It does not affect state-level taxes like South Dakota’s property taxes, sales taxes, or the proposed GRT [Memory: April 17, 2025, 22:26 PM PDT].
• Key Difference: The Core GRT Plan is a state-level solution that eliminates all state taxes, including property taxes, while the FairTax is a federal solution that replaces federal income taxes but leaves state taxes unchanged, meaning South Dakotans would still face state-level tax burdens under the FairTax alone.

Analogy for Clarity: The Core GRT Plan is like clearing all the picnic fees in your South Dakota picnic—no more spot fees or snack fees, just one $5 picnic cake fee for the whole picnic. The FairTax clears the big picnic boss’s fees from far away but leaves your local picnic spot fees and snack fees in place, so your picnic bill isn’t fully gone.

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💰 Financial Impact: Savings and Costs

The financial implications of the Core GRT Plan and the FairTax vary due to their scope and application, impacting South Dakotans differently:

• Core GRT Plan Savings: Eliminates $1.6 billion in property taxes state-wide, saving each household $3,000–$5,000 annually. For a $300,000 home in Sioux Falls, that’s $4,500 saved (1.5% rate). It also offers $200 residency rebates per person ($60 million total) and exemptions for small businesses, veterans, seniors, and military families ($32.5 million cost). Net gain for a Sioux Falls couple: $4,750 yearly (Page 10: How It Affects the Average Homeowner).
• FairTax Costs: Applies a 23% sales tax on new goods and services at the federal level, leaving state taxes unchanged. For a South Dakotan spending $20,000 annually on taxable goods (e.g., clothing, electronics, dining), this adds $4,600 in federal sales tax (23% rate). You’d still pay state property taxes ($4,500 for that $300,000 Sioux Falls home) and sales taxes ($1,300 on $20,000 at 6.5%), totaling $10,400 in taxes ($4,600 federal + $4,500 property + $1,300 sales). No rebates or exemptions are provided at the state level under the FairTax alone.
• Key Difference: The Core GRT Plan saves you $3,000–$5,000 annually by eliminating property taxes and offers rebates, while the FairTax adds a $4,600 federal sales tax burden on top of existing state taxes, totaling $10,400—significantly increasing your overall tax load compared to the current system.

Analogy for Clarity: The Core GRT Plan clears your picnic spot fee, saving you $4,500, and gives you a $400 picnic gift card, leaving you $4,750 richer. The FairTax adds a $4,600 picnic shopping fee while keeping your $4,500 picnic spot fee and $1,300 picnic snack fee—it’s like paying $10,400 to enjoy the picnic, making your picnic wallet much lighter!

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🗽 Liberty-Based Principles: Aligning with South Dakota Values

The Core GRT Plan and the FairTax differ in their alignment with liberty-based principles, particularly in how they address government overreach and empower citizens:

• Core GRT Plan: Eliminates property taxes, a direct form of state-level overreach that threatens your home and financial freedom, as we’ve explored (Page 18: The Power of the People’s Free Will). It simplifies the state tax system, reducing administrative burdens, and empowers citizens through SD-DOGE oversight and the ballot initiative process (Page 15: What Happens When Representatives Fail to Honor Their Duty). This plan aligns with the Founding Fathers’ vision of liberty by minimizing state taxation and maximizing autonomy.
• FairTax: Replaces federal income taxes with a sales tax, reducing federal overreach on earnings but leaving state taxes untouched. While it simplifies federal taxation, it doesn’t address state-level overreach like property taxes, which directly impact South Dakotans. It lacks the citizen-driven accountability of the Core GRT Plan, as it’s a top-down federal proposal without state-level empowerment mechanisms. Additionally, the 23% sales tax can feel regressive, disproportionately affecting lower-income households who spend a larger share of their income on taxable goods.
• Key Difference: The Core GRT Plan is a citizen-led, state-level initiative that eliminates property taxes and reduces state overreach, aligning with South Dakota’s values of limited government and individual freedom, while the FairTax, though reducing federal overreach, leaves state taxes unchanged and doesn’t empower South Dakotans directly at the state level.

Analogy for Clarity: The Core GRT Plan kicks out the local picnic bosses charging spot fees, making your South Dakota picnic free and letting picnic friends watch over the rules—it’s a picnic of local liberty! The FairTax sends away the far-off picnic boss but leaves the local picnic bosses charging spot fees, not fully freeing your picnic and missing the local picnic friend power.

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💡 Why the Core GRT Plan Wins: A Focused Solution for South Dakota

The Core GRT Plan offers a more targeted, liberty-focused solution for South Dakotans compared to the FairTax:

• Total State Tax Relief: Eliminates all state property taxes ($1.6 billion), saving you $3,000–$5,000 annually, while the FairTax adds a $4,600 federal sales tax burden on top of unchanged state taxes, totaling $10,400 in taxes.
• Simpler State System: Replaces all state taxes with one 5% GRT, reducing complexity, while the FairTax leaves state taxes untouched, maintaining a layered tax burden when combined with federal sales tax.
• Citizen Empowerment: Driven by your free will through the ballot initiative process, with SD-DOGE ensuring accountability, unlike the FairTax’s federal, top-down approach that doesn’t address state-level needs.
• Economic Impact: Frees up $1.6 billion in disposable income at the state level, boosting local spending and supporting industries like tourism ($4.96 billion), while the FairTax’s added federal burden reduces disposable income, impacting local economies.

Analogy for Clarity: The Core GRT Plan throws open your South Dakota picnic gates, clears all picnic fees, and lets you run the picnic with your picnic friends, making the picnic $4,750 richer for everyone. The FairTax clears far-off picnic fees but adds a $4,600 shopping fee while keeping your local $5,800 picnic fees—it’s like paying $10,400 to join a picnic that’s still not free in your own picnic yard!

📂 Learn More

• 🌄 Our Vision for South Dakota
  The future we’re building — bold, free, and family-first.
• 📊 End Property Tax: GRT Plan
  How the 5% Gross Receipts Tax will replace property taxes — and why it works.
• 📈 Revenue Verification
  Ensuring every dollar is accounted for — transparency you can trust.
• 🛡️ Safeguards to Protect Homes
  No tricks, no traps — just locked-in protections you can count on.
• 🕵️ SD-DOGE: Our Government Watchdog
  Efficiency, oversight, and a watchdog that works for the people.
• 👉 Get the Facts
  Will Prices Go Up?: Debunk myths about price increases under the GRT.
• 🚜 Family Farms & Ranches
  How the GRT protects and empowers South Dakota’s agricultural backbone.
• 👨‍👩‍👧‍👦 For Our Kids’ Future
  Building a legacy of freedom and opportunity for the next generation.
• 🏛️ South Dakota First
  Prioritizing our people, our values, and our future — always.
• 🆕 What’s New?
  Stay updated on the latest developments and announcements.