[1]Below is a brief overview of a bi-partisan initiative that is set to be brought to the floor of the Iowa Legislature when it gavels in next session. Once it is brought to the floor I will publish a more detailed look at it. As noted on Wednesday, Sen. Brad Zaun, Rep. Ako Abdul-Samad, and Rep. Kevin Koester have already signed on to support the measure and it will be interesting to see the reaction from both sides once the session starts.
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The Every Iowan Economic Empowerment Act or The Empowerment Act takes advantage of our state’s strengths in two ways.
I. Rewarding Hard Work & Sacrifice Provision
The first component of The Empowerment Act rewards the hard work and sacrifice of Iowans by eliminating taxation on overtime.
A. If an Iowan works an hourly or hourly jobs, after 40 hours state taxation ends. No hour worked over 40 hours is taxed whether that time is accrued at one job or a second or third job.
B. If an Iowan works a salaried position that consists of at least 40 hours per week as their primary job but works a second job that is either hourly or salaried that secondary employment will not be taxed by the state.
C. In a state with the highest per capita number of two working parent households, this rewards their sacrifice by allowing them as a household to keep more of the money they earn or allows one of the two to work less hours while the household brings home the same size weekly paycheck.
II. Capitalism & Working Class Iowa Empowerment Provision
The second component of The Empowerment Act returns to Iowans the ability to invest in and rebuild their communities while savaging rampant cronyism found in state and local gifting politics.
A. 5% Charitable Provision Each working Iowan gets 5% rebated from their individual state income tax bill and they can designate the non-profit organization or organizations of their choice to receive those funds.
B. 10% Rural Revitalization Provision Each working Iowan gets 10% rebated from their individual state income tax bill and they can designate the rural enterprise or enterprises of their choice to receive those funds.
C. 15% Entrepreneurship & Capitalist Empowerment Provision Each working Iowan gets 15% rebated from their individual state income tax bill and they can invest in any Iowa based business venture.
Implementation
1. Potential recipients for investment sign up as state vendors and provide relevant information such as their EIN, business organization charter, and banking information.
2. At tax refund time the state wires invested funds to the appropriate vendor not the taxpayer.
3. The taxpayer is responsible for vetting the investee and any collaborative efforts.
4. Demonstrable fraud is prosecuted as it would be under our current code.