A parable comes to life

Jesus told a parable about the folly of greed and materialism, recorded in Luke 12:15-21:

15 Then he said to them,“Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.”

16 And he told them this parable: “The ground of a certain rich man yielded an abundant harvest. 17 He thought to himself, ‘What shall I do? I have no place to store my crops.’

18 “Then he said, ‘This is what I’ll do. I will tear down my barns and build bigger ones, and there I will store my surplus grain. 19 And I’ll say to myself, “You have plenty of grain laid up for many years. Take life easy; eat, drink and be merry.”’

20 “But God said to him, ‘You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?’

21 “This is how it will be with whoever stores up things for themselves but is not rich toward God.”

For some reason, this parable came to mind as I read the story about how the rich in America are flocking to South Dakota to protect their wealth from estate taxes. Even the title is priceless. "Moguls rent South Dakota addresses to dodge taxes forever." I would not bet on eternity if I were them.

Here is a little taste of what is going on in South Dakota.

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.

Congress just passed a budget that cut unemployment and assistance programs for the poor, all in the name of reducing the federal deficit. The budget savings are a tiny, tiny, tiny fraction of the $121 billion that has flooded into empty storefront offices in the past four years, but alas, I digress.

The story goes on to describe how the rich are attracted not only to the loopholes, but also the secrecy and protection from creditors and ex-wives. The tale was sufficiently nauseating that the oatmeal I had for breakfast felt like a rock in my stomach.

Then I came to the part where the state lawmakers put a gaudy shade of red lipstick on their pig.

In South Dakota, a farm state that’s home to two of the 10 poorest counties in the U.S., lawmakers say they’re bolstering the trust industry to generate work for local law firms and bankers, and forge ties with prosperous families that may one day decide to build a factory or a warehouse here.

Yes, pearls before swine. So these lawmakers, who claim to be such righteous, God-fearing men and women on the campaign trail, are doing something they know does not benefit the people in their state. The chance of any future benefit is less than that of winning the latest mega-super-powerball lottery. That is probably not completely accurate. I am sure these glorious public servants will be rewarded with generous and anonymous campaign contributions so they can continue to serve state residents to the best of their ability. Trickle down economics at its very finest.

“If you’ve got several hundred well-paying jobs, it’s worth it to us,” said Governor Dennis Daugaard, a Republican who used to travel to Minneapolis pitching tax-saving trusts when he worked at a bank in Sioux Falls. “It also gives us the opportunity to develop relationships with people who have the ability to encourage business here of other sorts. Now, I can’t point to a single case where that’s occurred yet, but I think it’s possible.”

I am curious what sort of "relationships" one can have with people who rent out offices in empty storefronts. I am sure they are deep and meaningful, just like a Kardashian marriage.

To try to maintain its edge, South Dakota assembled a permanent task force comprising industry players such as McDowell to monitor developments in other states and propose new legislation each year. In March, Governor Daugaard signed the group’s latest submission into law, making it harder for former spouses and their offspring to tap certain trust assets. The bill was sponsored by the House’s Committee on State Affairs, whose chairman, David Lust, is also House majority leader and head of the trust task force. When the part-time legislature isn’t in session, Lust works at a Rapid City law firm where one of his partners is a leading trust lawyer.

Come on, Lust, say something in lawyerese.

Lust receives no “direct benefit” from the legislation, he said.

Thank you.

Meanwhile, in the real world, millions of Americans are struggling to pay for food, shelter, utilities, and medical care. Lord, we need guidance and we need it quickly.