Gov. Kristi Noem, R-S.D., who is seeking re-election in the midterm election this November, announced that she will eliminate the sales tax on all grocery purchases in South Dakota, the governor's office told Fox News Digital.
"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 Noem while announcing the new tax cut in Rapid City, South Dakota, Wednesday.
"This permanent tax cut will put hundreds of dollars in the pockets of the average South Dakota family," Noem said.
Noem said the economic climate was one of the contributing factors to her decision to make the tax cut.
"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," Noem said.
Noem's decision to relinquish the grocery sales tax will reduce taxes on South Dakotans by $100 million, according to the governor's office.
The most recent Consumer Price Index (CPI) report revealed that inflation rose to 8.3% in August, up from 8.2% in July after hitting a 40-year-high of 9.1% in June. The announcement cited data from the Federal Reserve of St. Louis, claiming that "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%."
Noem's office highlighted how much salaries in South Dakota have grown since the governor took office.
"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," the press release Noem's office said.
Noem is back on the ballot this fall after securing the governor's seat in 2019, fighting to hold her position as South Dakota's governor for another four-year term.
