by Art Smith | Mar 29, 2009
The deductibility of Federal Income Tax on the Iowa Income Tax is in jeopardy. Iowa Democrats have officially brought the issue to the table in the Iowa House in HSB 284 (currently in the Ways and Means Committee). Iowans need to stand up against this bill, as it is a direct increase in the income tax obligation of Iowans. After rejecting sound recommendations from Iowans and elected Republicans, the Democrats are anxious to fix the mess they have created by raising our taxes.
There will be a Public Hearing on Tuesday, March 31, 6:30 PM (meeting commences at 7:30) at the Iowa Statehouse in the House Chambers. This is the public’s best opportunity to be heard. If you can, please plan to attend. If you don’t want to see your taxes raised, now is the time to act. Attend the hearing. Contact your contact your State House Representative and Senator. Doing nothing will allow this to proceed.
Matt Strawn, Chairman of the Republican Party of Iowa, had comments on this in the past few days:
Democrats release Plan to Eliminate Federal Deductibility to Force YOU to Pay a Tax on a Tax: Elimination of Federal Deductibility looks like it is on the Democrats’ “Must Do†List before Session Ends. This could be Death Blow to our Economy!
It is becoming increasingly clear that legislative Democrats plan to raise income taxes on thousands of Iowans before they leave town and they will do so by eliminating your right to deduct federal income tax payments on your Iowa income tax return.
Brace yourself, but elimination of federal deductibility would mean a huge tax increase on the very Iowans who start businesses and create jobs—the people on whom our state’s future economic recovery rests. This tax increase would spell utter disaster for Iowa taxpayers and cripple the Iowa economy.
For years some people have talked about getting rid of federal deductibility and lowering income tax rates to make the whole works revenue neutral for ALL taxpayers. But this is NOT what the Democrat tax and spenders at the State Capitol are planning. No. Instead, legislative Democrats are going to play class warfare and punish those Iowans who have the audacity to succeed.
A few weeks back Senate Democrat leaders first suggested elimination of federal deductibility was on the table for serious consideration. This week that sentiment was echoed by House Speaker Pat Murphy (see the story “In the News†below). And, yesterday, Democrats released details of their plan to eliminate federal deductibility and raise income taxes on nearly 90,000 Iowa households.
Iowa Democrats should be ashamed. In the face of the challenges presented by this economic upheaval, how have they responded? Well, they’ve cleaned out the check book (the general fund is out of money). They’ve emptied the savings account (the reserve funds are being run dry). They are planning to max out the charge cards (see the Governor’s plan to borrow three quarters of a billion dollars). Now, they want to mug thousands of Iowa taxpayers to feed their spending habits.
Folks, this looks very real to me and we had better be prepared to act. Please watch in the next week as the Republican Party of Iowa prepares to do battle on this critical issue. We will bring to you multiple opportunities to engage on this issue and I trust Iowa Republicans will respond to our call to arms to prevent this destructive tax increase.
People, we cannot let the Democrats tear our financial house to shreds! Show up!
by Art Smith | Mar 13, 2009
Iowa House Republican Leader Kraig Paulson provided a report on the status of the first Funnel Week activities:
During each legislative session there is a point in time when we reach the ‘funnel weeks’. These are self imposed deadlines which state a bill must have made it out of committee or it cannot be considered for the rest of the year. The deadline does not apply to spending bills, tax bills, or certain leadership sponsored bills.
This week was the first funnel week at the Capitol and like every year, there are some survivors and some casualties.
First, some of the causalities or bills that didn’t make it:
- Tougher penalties on the delivery, possession, and manufacture of cocaine
- Increase penalties for employing illegal immigrants
- Allocate $15 million from the Iowa Values fund to Small Businesses for disaster recovery efforts.
- Create tax credits to benefit those in disaster areas
- Changes to Iowa Smoke Free Air Act
- Bills prohibiting cell phone use while driving
- Repeal of Iowa’s right-to-work law (once again this bill is dead, we’re hopeful no attempt will be made to amend it on to any other bills)
Now, the survivors:
- Prevailing Wage (price fixing for public projects)
- Employee choice of doctor (doctor shopping workers compensation bill)
- Public Employee (Chapter 20) contract negotiating technical changes — this bill is identical to the initial collective bargaining bill the Democrats tried to sneak through last year
- Private cause of action for consumer fraud
- Increasing Tax on Propane
One quick note, even though a particular idea may have “died in the funnel†it may still return in the form of an amendment. For the full list, visit the House Republicans’ website at http://iowahouserepublicans.com/funnel-week-survivors-first-funnel-2009.
It was a rather crazy week. It had some highs and some lows. The most significant positive was the fact that enough votes to pass the doctor shopping bill never surfaced. You may recall the Democrat majority had, with much fanfare, declared they were going to turn our current workers compensation balance on its ear by allowing employees to choose their own doctor for employment related injuries.
Recall also that currently Iowa’s workers compensation cost is 41st in the nation and yet we have the 3rd highest employee benefits. It’s a well balanced system and this proposal was projected to raise insurance by as much as 15%. But Iowans engaged and the bill did not even get called up for a vote.
My biggest disappointment is that we still have yet to do anything of consequence to help restore our economy. On Monday I did a Point of Personal Privilege on the House floor reminding the Speaker that Republicans believe the House priority should be bills tested with the following: Does the proposed legislation grow Iowa’s economy – Does it create more jobs – Does it encourage employers to invest in our workforce? If it passes the test we should press forward, if it does not, it should be set aside.
Regardless, 80,000 Iowans remain unemployed and we continue to debate things like changing the names of state government departments and creating a special tax on paint. This seems ridiculous to me.
I think it’s regrettable we have now finished week 9 and really have yet to do anything affirmative to restart Iowa’s economy. Nothing to help small business owners who are hanging on with all their might and nothing to help ease the tax burden on families across the state.
Republicans will not stop trying to reach across the aisle to get productive work done on behalf of Iowans. We’ll sit down with Democrats, when they let us, and craft solutions to the problems we’re facing.
We will work hard coming up with solutions that help restart Iowa’s economy and balance the budget without raising taxes on Iowans.
As always, if you have ideas and thoughts, please contact me [email protected] and visit our website to see constantly updated information (www.iowahouserepublicans.com).
by Art Smith | Mar 8, 2009
This week’s newsletter from Peter Cownie provides some insight into some of his goals as a legislator. Helping keep young people in Iowa after they graduate from high school and/or college has been a challenge in recent decades. Reasons for the large numbers of youth leaving the state range from financial opportunity to entertainment to lifestyle. Ultimately, jobs are key, and attracting young people means attracting companies. Peter also looks at ways to promote staying in Iowa for college education.
The best question a citizen can ask a person seeking public office is: why are you doing this? Every candidate should have a passion for what he/she is trying to accomplish and remember that passion each time he/she makes a decision. I was asked this question more than any other during the campaign. My answer is simple: I want to see more young people in Iowa. I grew up in Iowa and I want to do something about the young people that have chosen not to stay here and those that might think to leave in the future.
I serve on the Economic Growth Committee and we recently heard a presentation from the Generation Iowa Commission. I asked the presenter what deters young people from staying in Iowa after college. The answer was one word: jobs. I could not agree more. Young people will go where the best jobs are located. The current economic times will only reinforce this reality. In every decision a legislator makes this session, he/she needs to keep in mind the 80,000 unemployed Iowans and how we can help put them back to work. We also need to bear in mind those young people who want jobs in Iowa.
The Iowa Legislature needs to remember the big picture. The big picture is that Iowa’s population is not growing quickly compared to other states. According to estimates from the Census Bureau for 2000-2008, Iowa ranks 42nd in population growth percentage. I have introduced a bill that will help retain and recruit young people to Iowa. This bill would allow college graduates who stay in Iowa to deduct the interest on student loan payments changing the limit from $2,500 to $5,000 annually. Students in Iowa graduate with the highest debt levels ($26,208 on average) in America. This bill would give direct help to college graduates who are just starting a job and could use the relief in their pocketbook. It is in the best interest of the Iowa Legislature to reach out to our young people and ease their burden. This bill will help keep our young people where we want them: Iowa.
This week’s newsletter also appeared in the West Des Moines section of the Des Moines Register, along with pieces from Pat Ward and Chris Hagenow. You may note that Pat hits hard on the Popular Vote bill, which we have opposed here as well.
Peter, Pat and Chris, along with Bob Brownell, also hosted a public forum in West Des Moines on February 28, which I attended. More on that later.
by Art Smith | Mar 8, 2009
Peter’s weekly newsletter (pdf here) from Feb 23 is below. How our state Legislators evaluate bills to identify where priorities and value are best provided in our economic situation is definitely key. Peter provides some great perspective on what we do (or rather, don’t do) to ensure that the next generation has the skills they need to manage their personal finances responsibly, and he has put forth a bill to do just that.
The current General Assembly should be doing everything within its means to improve Iowa’s economy. America is experiencing historic downturns in the stock market, housing market, and the banking industry, and unemployment is rising in Iowa and the nation. The primary question that legislators should be asking themselves is what they can do to help improve the economy. Legislators should be asking these three questions when looking at every bill that comes to a vote this session:
- Does this legislation grow Iowa’s economy?
- Does this legislation create more jobs?
- Does this legislation encourage employers to invest in our state?
The Legislature also needs to think about the future generation of Iowans. How can we best help them to attain the skills necessary to succeed in life? I believe that every student in Iowa should receive specific financial literacy education in his/her school. Last year, the Legislature took a good first step in requiring financial literacy to be part of the core curriculum for our schools. However, the Legislature did not go far enough.
The current financial literacy curriculum is not specific enough in nature. I believe every student in Iowa should know how to balance a checkbook, learn the danger of a credit card, the responsibilities regarding a home mortgage, and the merits of saving money. These are skills and knowledge lacking in our society. I have drafted a bill that will do precisely this. The Legislature can take an important step for the future of all Iowans by passing this legislation. Everyday the Legislature needs to work at getting Iowa back to economic prosperity. We also need to keep in mind the next generation of Iowans. It is our job to ensure they do not encounter the same problems we are experiencing. It is every legislator’s duty to serve all Iowans even the ones who do not yet have the right to vote.
by Art Smith | Feb 23, 2009
This just released by Senator Minority Leader Paul McKinley’s (R-Chariton) office:
Senate Democrats Pass “Iowa Voter Irrelevancy Actâ€
Out of State Government Committee
Senate Republicans instead focus on creating jobs and promoting Iowa’s economy and wonder why Senate Democrats are more focused on making Iowa’s voters irrelevant
DES MOINES, IA – A Senate Democrat proposal to strip Iowa of its influence in future presidential elections, dubbed the “Iowa Voter Irrelevancy Actâ€, passed out of the Senate State Government Committee today on an 8-7 vote with two Democrats joining unified Republican opposition to the bill. While Senate Republicans are busy trying to find way to save taxpayers money, keep taxes low, create good paying jobs and grow Iowa’s economy, this unpopular bill is being pushed through the legislative process. Should it gain enough votes in the Iowa House, the Iowa Senate and if it is signed by Governor Culver, Iowans right to have a say in who becomes the President of the United States will be dramatically diminished.
“As Iowans hear the details of this bill, I think they will end up coming to the capitol in outrage and demand answers. This is a terrible piece of legislation and Iowans must contact their legislators about this immediately to stop the Democrats from making Iowa voters irrelevant,†said Senate Republican Leader Paul McKinley (R-Chariton). “Senate Republicans are focused on trying to grow Iowa’s economy, create and retain jobs and root out wasteful government spending but it appears that the Democratic agenda rests figuring out ways to cut Iowans out of presidential election process. You would think they already have enough on their plate considering their hundreds of millions in self inflicted budget deficits and their union boss anti-job agenda that will only raise taxes on Iowans already dealing with tough financial times.â€
This bill would reverse traditions that date back centuries as our country’s founding fathers put the Electoral College in place to protect smaller states from having their say diminished by the larger, more heavily populated states. As it stands now, Iowa has seven electoral votes and those votes are awarded to whichever presidential candidate manages to win the most votes based on the results of Iowa’s 99 counties. However, this Democrat pushed bill will undermine that storied tradition with one fail swoop. This bill will force Iowa to give its seven electoral votes to the winner of the national popular vote instead of Iowa’s popular vote.
“Democrats must really want voters in urban centers like Chicago, New York City, Los Angeles, Miami or Boston having more say in the process than the voters in our communities all over the state,†said McKinley. “During last year’s election, groups like ACORN were out meddling with voter registrations and tampering with our elections. Do we really want to give them more opportunity to steal our legitimate right to determine who becomes our country’s president?â€
If this bill were enacted, presidential candidates would have very limited motivation to come to Iowa to campaign for votes because Iowa is only about 1/100 of the country’s population. They would instead stick to campaigning in other states where the population is more dense and Iowans would be ignored and our issues would be swept aside. This is just another example of how our founding fathers were once again right on target in their desires to protect smaller states.
“I want to urge every Iowan to immediately contact their Senator about this bill and let them know that it is wrong for Senate Democrats to make Iowa’s voters irrelevant,†said McKinley. “Let them know that with 80,000 Iowans out of work, they should be focused on creating jobs and growing Iowa’s economy instead of limiting our influence in presidential elections.â€
Committee Roll Call Vote:
Nay: Sen. Feenstra (R-Hull), Sen. Behn (R-Boone), Sen. Hartsuch (R-Bettendorf), Sen. Seymour (R-Woodbine), Sen. Wieck (R-Sioux City), Sen. Horn (D-Cedar Rapids), Sen. Black (D-Grinnell)
Yes: Sen. Appel (D-Ackworth), Sen. Kibbie (D-Emmetsburg), Sen. Sodders (D-State Center), Sen. Jochum (D-Dubuque), Sen. Hatch (D-Des Moines), Sen. Dearden (D-Des Moines), Sen. Danielson (D-Cedar Falls), Sen. Courtney (D-Burlington)
You already know how I feel if you’ve been following this. I feel like we’re watching one of those movies where the folks who are supposed to be protecting us are too stupid to realize they’re being taken in by the very people they are supposed to be protecting us from.
Next we’ll be looking at legislating by referendum (works great for California, don’t you think?). And the current leadership will love it because they can leave the dicey stuff up to the public, similar to their current approach of leaving the dicey stuff up to the courts. Either way, they don’t have to take a stand. Only one word for someone like that: coward.
The plan to work around the US Constitution (don’t you hate how that thing gets in the way of doing things like restricting freedom?) is just going to create a miserable mess. Instead of sneaking this past voters just to make Democrats feel better about losing in 2000, let’s have an open public debate about the continued viability of the Electoral College.
Oh, sorry, is that too much trouble?
Unless you want to be treated like sheep, contact your State House Representative and Senator. At these links you’ll find email, phone numbers, and home addresses. I would urge you to send an email right away, and perhaps follow up with a phone call. I have contacted both Representative Peter Cownie and Senator Pat Ward, and they have assured they are “No” votes on this bill, but your legislator need to hear from you!
