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The Conservative Reader:
Iowa

Alert: April 2 Debate On HF 807 Postponed! – Updated

Alert: April 2 Debate On HF 807 Postponed! – Updated

(Updated with message from Ed Failor Jr. below. – Ed.)

We received word from Ed Failor Jr. of Iowans For Tax Relief that Thursday’s planned debate on House File 807, Repeal of Federal Deductibility, has been canceled. We don’t yet know when it will be scheduled. You may have heard that Iowans For Tax Relief were asking for people to show up at the Capitol on April 2, but due to this late event, that request is canceled.

We were wondering whether the Majority Party was trying to delay things until the media attention died down, or if they were working on some other tactic to sneak the bill through.  Kent Sorenson, Republican House Member representing House District 74 (Warren County), tells us via twitter tonight that the Democrats are working on an amendment in an attempt to ensure they can get 51 votes.  This could be interesting.

We still strongly urge you to contact your representatives to express your opinion about the bill. A tax on a tax is not good for Iowa.

To find out who your representatives are and contact them:

http://www.taxrelief.org/legislators

The Conservative Reader is committed to ensuring that you know when your rights are in danger.  This is one of those times.

Update: Message From Ed Failor:

Dear Friends-

Great news…we have just learned that the Democrat Leadership in the Iowa House has canceled debate tomorrow on the bill to force you to pay a tax on a tax. This means we do not need you to travel to the State Capitol tomorrow. This is a small victory for us, as typically, this action would indicate as of tonight Speaker Murphy does not have the votes to repeal federal deductibility.

We must remain vigilant. We need you to continue contacting your Legislators and Governor Culver to remind them it is not fair to pay a tax on a tax. If federal deductibility is repealed over 490,000 Iowa taxpayers will see a tax increase, not to mention that of those 180,000 people make less than $40,000 per year.

We will continue fighting for you, and we are not taking anything for granted until House File 807, the bill to force you to pay a tax on a tax, is officially dead and we have taken back the People’s House.

Your financial support is more critical than ever so we can continue airing on message of “No Tax on a Tax” on television and radio stations across Iowa. If you are able to support our efforts, please make a secure online donation to Iowans for Tax Relief today by clicking here.

Sincerely,

Ed Failor, Jr.
President
Iowans for Tax Relief

The Iowa House: No Place For The Public

The Iowa House: No Place For The Public

Empty Gallery

Pat Murphy will probably say he was well within his rights to clear the gallery at tonight’s Public Hearing on House File 807, the bill to repeal the deduction of Federal Income Tax from Iowa Income Tax.

But he was so wrong.

The galleries were filled with people who opposed the bill.  It is interesting that Democrats could not raise up any more than a handful of speakers to support the bill, none to sit in the gallery who support the bill.  And those who spoke in favor were the expected litany of social services and union leaders who would either benefit directly from the bill or are beholden to Democrats.  One speaker in favor, it was observed, sounded distinctly as if he did not even believe what he was saying.

It’s intriguing to see people mischaracterize the events in the House this evening.  I was there.  The very first speaker was roundly booed, and I’ll admit that was inappropriate.  The public was warned.  After that, no other speaker in favor of the bill received much more than a low murmur of opposition, and that was not worth talking about.

The galleries were full of people who could not contain, however, their enthusiasm and support for the comments of those who actually made sense, spoke for Iowans and opposed the bill.  What Pat Murphy (who by the way was not visible in the chamber except when he threw the public out) was facing was an uprising of Iowans who have finally had it with the continued outrageous spending and tax increases being sugar coated as a tax reduction.

Ed Failor Jr., President of Iowans For Tax Relief, was one of many who hit the target on this issue: it will tell our graduating college seniors that there is no room for them or their dreams.  This bill will impact them coming out of school into the work force (those making under $40,000 will be negatively impacted) and will impact their dreams to be successful.  They will be a target.

Many small business owners got up to speak in opposition to the bill.  We already know that small businesses, who employ the majority of Iowans, are at significant risk in the current economy.  And this bill will most dramatically impact their tax burden.  They will pay more.  Several speakers had taken the time to ask their tax preparers to calculate the impact of the bill on their taxes.  One man explained that he would see a 50% increase in his State tax obligation.

Others spoke very eloquently about the absurdity of the bill.  I think there were perhaps 5 or 6 who spoke in favor, and 40 or so against it.

The straw that broke Murphy’s back was the applause after college student Greg Baker spoke.   Busloads of students from Ames and Iowa City came.  It was encouraging to so many students there who share our conservative values.  I just hope they don’t all decide to move out of state after this session is over.

And once the crowd found out they were being ejected, essentially turning the “public” hearing into a private one, that’s when the shouting and anger showed.  People were escorted out, and still in an orderly fashion, but not without getting a few messages in.  The one that rings the loudest is:

“This is the people’s house, but not any longer!”

A later speaker, Ted Morgan, said:

“I’ve never been in a house where the tenants evicted the landlords.”

Republican Party of Iowa Chairman Matt Strawn put it well:

“Never have I seen such a gross display of arrogance and disdain for Iowa taxpayers.  The Iowa House is supposed to serve as the people’s house, the house where great ideas are debated and discussed.”

Earlier in the day, Rep. Paul Shomshor, D-Council Bluffs and chairman of the House Ways and Means Committee, was quoted as saying:

“We think eliminating federal deductibility is helpful for families and middle-class taxpayers,” said Rep. Paul Shomshor, D-Council Bluffs and chairman of the House Ways and Means Committee.

I don’t know how an intelligent person can get away with making a statement like that.  Either arrogant or stupid, either way it seems obvious Iowa has made a huge mistake electing Democrats into office.

Iowans are starting to see the truth; Murphy may have single-handedly lit a fire he won’t be able to contain.

Kraig Paulson: An Update on Federal Deductibility

Kraig Paulson: An Update on Federal Deductibility

Update:  Repeal of Federal Deductibility is tax increase in every tax bracket!

Yesterday’s newsletter addressed the Democrat proposal to eliminate federal deductibility; a tool that allows Iowans to deduct our federal income taxes from our ordinary income prior to calculating our income for state taxes.   This is the largest, and in some cases the only, tax deduction available to many hardworking Iowans. 

Last night the House Ways & Means Committee passed out the proposal on a party line vote.  14 Democrats voted aye – 11 Republicans voted no.   House File 807 is the new bill number as the bill moves forward and becomes eligible for debate in the House.

After having additional time to study the proposal, we have discovered exactly what we expected: more Iowans than originally stated are going to see a tax increase.  It is disheartening to hear this explained to Iowa’s taxpayers as a tax cut for two-thirds of Iowans.  The facts tell us– it is not.  

Under the Democrats’ proposal, 50.9 percent of Iowans will either see no change in their tax liability or see a tax increase in 2009.  40% of the individuals receiving a tax increase make less than $40,000 per year.  69% of the individuals receiving a tax increase make less than $70,000 per year.  See the breakdown of HF 807 at http://iowahouserepublicans.com/wp-content/uploads/09-feddeductibility-finalversion.pdf.

And believe it or not, over 10% of the individuals receiving a tax decrease in 2009 make over $100,000 per year.  Based on the discussion last night in committee it appears to be hit or miss as to who the real winners and losers are.

Additionally, the Democrats have failed to inform Iowans about the implications of their proposal in 2011.   On December 31, 2010, the federal tax relief of 2001 and 2003 will expire. It appears now that Iowans’ federal income tax liability will increase by $160 – $180 million.  This means that you’ll lose the ability to deduct your federal taxes less than two years before your federal taxes are set to dramatically increase.

Finally, the Democrats’ proposal has the potential to put Iowa small businesses in an even deeper hole.  Because many Iowa small businesses are structured as individual tax payers they too will see their taxes increase.   The way many of these businesses will try to absorb this cost is by eliminating jobs or by passing the added expense onto the consumer.   Either way, our struggling economy will continue to suffer under this plan.  

Make no mistake this bill is a tax increase on Iowans in all tax brackets from day one.  And within a few years it will result in a huge tax increase for almost every single Iowan.

When this bill is considered by the legislature, House Republicans will fight on behalf of all taxpayers and their ability to keep more of their hard earned dollars.

PUBLIC HEARING: Tuesday, March 31, 2009

Location: House of Representatives Chamber, Capitol Building, Des Moines

Time: 7:30 pm-9:30 pm tonight.  (Rally at 6:30 in the Cafeteria)

If you can attend the public hearing at the State Capitol on Tuesday at please join us.

EMAIL AND PHONE CALLS
If you are not able to make it but still want to make a difference please call and email your elected officials today.

House Switchboard: (515) 281-3221

Senate Switchboard: (515) 281-3371

Email Lookup: http://www.legis.state.ia.us/aspx/Legislators/LegislatorInfo.aspx

LISTEN TO THE HEARING ONLINE
You can listen to the public debate online Tuesday night through this website http://www.legis.state.ia.us/Audio/Audio.html and click on house audio.

IOWA GOP ACTION ALERT

IOWA GOP ACTION ALERT

A new message from Matt Strawn, Republican Party of Iowa:

DEMOCRATS PLAN TO ELIMINATE FEDERAL DEDUCTIBILITY AND RAISE TAXES ON IOWANS!

ACTION ITEM:  Join US for a Republican Rally at the State Capitol tomorrow night.

Just when you thought things could not get worse at the Democrat-controlled Statehouse, majority Democrats have hatched a plan to raise income taxes on tens of thousands of Iowans by eliminating your right to deduct federal income taxes on your Iowa income tax return.

What Democrats call “tax reform” we see for what it is:  a blatant attempt to use Iowa’s tax code to play destructive class warfare games and redistribute the wealth.  Their plan would result in big tax increases on the very people on which we are depending to get this state out of our economic slump.

And, for the first time in Iowa history, you would be forced to pay state income tax on money you use to pay your federal income tax.  A tax on a tax is wrong and Iowa Republicans MUST stand together and defeat this job-killing legislation.

Here are TWO big ways you can help stop this bill:

  1. ATTEND the Republican Rally at the State Capitol today.   On Tuesday, March 31, at 7:30 p.m. there will be a public hearing on the proposed bill to eliminate federal deductibility.  We want to pack the House Chamber with hundreds of Republicans to oppose this terrible legislation.

    Republicans are encouraged to gather in the basement of the State Capitol at 6:30 p.m. on Tuesday night to hear from opposition leaders and learn how you can make a difference.  We will then march up to the House Chamber and fill the seats.  If you are able to attend, please send an email to Eric Johansen, our Political Director, at [email protected].

  2. Call your State Representative and State Senator, ASAP.  Let your legislators know you strongly support keeping federal deductibility and OPPOSE raising taxes on Iowa’s job creators.  Here are the numbers for the House and Senate:

Iowa House of Representatives:  515.281.3221
Iowa Senate:  515.281.3371

Don’t know your state legislators?  Click here and use this tool to find out who represents you.

Want to see the actual bill?  Click here to see the actual legislation.

This legislation could be the defining moment of the 2009 General Assembly.  The state checkbook is empty, the savings are nearly gone, the credit card is getting ready for action, and now Democrats are getting ready to stick-up taxpayers for even more.  Enough is enough.

You don’t have to wait until November 2010 to start making a difference.  You don’t have to wait to make your voice heard.  JOIN us at the State Capitol tomorrow, call your legislators, and SHARE this information with other Iowa Republicans.

We can still win this battle.   ACT NOW!

~ ~ ~ ~ ~

The Conservative Reader will be at the Rally and Hearing… look for udpates on Art Smith’s Twitter, and a wrapup here after the hearing!

Peter Cownie Weekly Update: Keeping Young People In Iowa

Peter Cownie Weekly Update: Keeping Young People In Iowa

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.

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