IowaPolitics.com BlogWatch

Some issues don't break down on party lines. A release by Joel
Dykstra, a Canton Republican who wants to join the U.S. Senate in
January 2009, serves as a good reminder. Dykstra lays out his
opposition to the idea of a federal gas tax holiday from Memorial Day
to Labor Day, an idea floated by Republican presumptive presidential
nominee John McCain and others. It's geared to the major vacation
driving season, and taking away the 18.4 cent federal gas tax would
offer relief at the pump, goes the theory. Unleaded gas just rose by a
dime to $3.52 at most Sioux City stations two days ago. But Dykstra
says the tax holiday would do more harm than good. He contends there's
"no guarantee that a reduction in the tax would benefit consumers."

Labels: taxes

From the Des Moines Register: "Iowa will hike its sales tax by 1 cent
per dollar, replacing local-option sales taxes that each of Iowa's 99
counties collect for school infrastructure, under a bill signed into
law today by Gov. Chet Culver. For most Iowans, there will be no
out-of-pocket difference because one tax is simply replacing another
that they pay already. But the important difference between the tax is
one of financial fairness, advocates of the proposal have said." The
Iowa Legislature and Governor Chet Culver basically said "Screw The
Taxpayers" and took away the option of eliminating the tax in their
area if they felt the local school district was spending the money the
wrong way.

Labels: education, taxes

State Auditor Dave Vaudt released a report today revealing yet another
way that Iowa Taxpayers have gotten the shaft from our state
government. Our esteemed leaders have paid A.T. Kearney, a consulting
firm roughly $4.5 million dollars over the past two years. Their task
was to find cost savings in the state budget. The justification for
this $4.5 Million expense: Find $10.6 Million in savings. But that's
just where the lunacy started. Not only did they fail to give us value
for our $4.5 Million, they found only $3 Million in savings. We lost
$2 Million on the deal. Nice.

Labels: taxes

No New Courthouse for Polk Co. ... A ballot measure that would have
raised property taxes in Polk County to get the $132 million needed
for a new Polk County Courthouse (and renovations to the old one)
failed by a wide margin yesterday. In order to be approved, the
measure needed to pass with 60% of the vote. Instead, it failed, with
the "no" votes taking 57%. I had mixed feelings about this. Tax
increases suck, but I can see the need for more space, and the idea of
keeping the criminal stuff separate also appeals to me. There's
nothing like going to pay a traffic ticket and having a guy in a
striped jumpsuit and cuffs sit next to you while you wait to be
helped.

Labels: Legislature, taxes

Newspapers across the state blared the above headline Thursday
morning, as taxes will again be raised in Iowa. That's right -- over
$400 million in total tax increases, and counting, so far. The latest
measure would eliminate the local option sales tax for schools, and
replace it with a statewide penny sales tax that, for now, is devoted
to schools. Two aspects of this bill are troubling. As we have seen
time and time and time again, all too often when the governor and
Legislature get their hands on funding, it gets "scooped" for other
pet projects, especially in times of economic slowdown. Second, this
tax increase now raises the state's use tax as well. The use tax is
applied when businesses purchase goods from out of the state to use
here in Iowa.

Labels: taxes

Today, Governor Culver bravely endorsed higher gas taxes. Apparently
the steady escalation of gasoline and diesel prices have finally
produced what we free market advocates always knew it would, reduced
consumption of gasoline and diesel. That's what conservatives call
conservation-less consumption without any government action at all,
how existential to be sure. It seems that three bucks a gallon
triggered Iowans collective gag reflex and we are actually driving
fewer miles. One consequence of conservation is a reduction of fuel
tax revenue. It, of course, makes sense; as we purchase fewer gallons
of gas the State's per gallon based tax revenue diminishes in a linear
relationship to the decline in gallons purchased.

Labels: Chet_Culver, taxes

The issue of increasing gas taxes to pay for highway improvements is
being weighed in Siouxland this year. The Nebraska Unicameral passed a
bill to raise the gas tax by a penny, but yesterday Gov. Dave Heineman
vetoed it. He said "now is not the time to raise the gas tax," since
"gasoline and diesel prices are hitting record highs almost every
week, the cost of food is increasing and health care costs are
soaring." Meanwhile, a gas tax increase of a few cents per gallon is
under consideration by Iowa legislators. A one-cent increase would
direct $22 million to the highway coffers, two cents would bring in
$44 million annually, etc. Iowa Farm Bureau, which has considerable
clout in Iowa, is backing a gas increase of a few pennies.

Labels: taxes

The Press-Citizen has a regular Sunday editorial page column called
"Our Quick Take on Last Week's News Stories." Editorial, "Our View --
Our quick take on last week's news stories," Iowa City Press-Citizen,
January 27, 2008, p. A9. But its Saturday issue contained so many
stories that relate to topics followed by this blog that I've decided
we can have an "Our Quick Take on This Weekend's Stories." The folly
of corporate subsidies vs. the sure path to economic development. We
often comment about the folly of injecting taxpayers' money (in the
form of tax breaks, TIFs, infrastructure development, and outright
bribery) onto the bottom line of for-profit businesses...

Labels: taxes

If you are already making plans for the federal tax rebate, you might
want to consider that the state of Iowa could have its hand out to
take a chunk. The federal rebates would still be subject to Iowa's
income tax unless state lawmakers and Gov. Chet Culver decide to
exempt them. That's what lawmakers did the last time federal tax
rebates were issued in 2001. Renee Mulvey, spokeswoman for the Iowa
Department of Revenue, said the tax rate would vary depending on
several factors, with a top rate of 8.98 percent. Iowa House Minority
Leader Christopher Rants, R-Sioux City, said Republicans are drafting
legislation to ensure Iowans won't end up paying a state tax on their
rebates.

Labels: Chet_Culver, Christopher Rants, taxes

Democrats in Iowa this week continue to promise your tax money to
others. In just the last 48 hours Chris Dodd has said that he will
spend at least another $48 billion for Veteran's Benefits. Hey, at
least the people getting this benefit actually contributed something
to the larger nation for which they should be rewarded. Moreover, Dodd
is also talking about a defined group rather than a social entitlement
for everyone. Barack Obama promises far greater federal generosity.
Obama has offered plans to convert the Family Medical Leave Act into a
welfare entitlement, with paid leave instead of unpaid leave.

Labels: Barack_Obama, Chris_Dodd, taxes

Peanuts comic character Linus probably would be upset, and Iowa House
Minority Leader Christopher Rants definitely is. As newspaper stories
on a new tax on pumpkins in Iowa are published today on Halloween,
Sioux City Republican Rants is slamming the tax as another example of
runaway confiscation of incomes by Democrats. Or, more precisely in
his words, Democrats should "stop taxing fun." The Iowa Department of
Revenue is taxing pumpkins after a new policy determined pumpkins are
used primarily for Halloween decorations and not food, and thus should
be taxed at the 6 percent state rate. Previously, pumpkins were
considered an edible squash and exempt from taxation. The move has
pumpkin owners bemoaning a bite into their fall pumpkin sale profits
and Rants raging.

Labels: Christopher Rants, taxes

Iowans for Tax Relief recently announced that it was backing a primary
candidate against incumbent Republican Clarence Hoffman in the
Republican primary in State House District 55 (Ida County and parts of
Crawford, Monona and Woodbury County). Hoffman is a fifth term
Representative who crossed party lines to support the bill banning
discrimination based on sexual orientation. This is the second time
Iowans for Tax Relief has backed a primary candidate against an
incumbent Republican so far for the 2008 cycle. The first State
Representative that they tried to primary, Walt Tomenga in House
District 69 (Johnston and Grimes) has since announced his retirement.

Labels: taxes

You have to hand it to our local chamber of commerce. The Greater Des
Moines Partnership, with the backing of the biggest companies in town
and a $770,000 war chest - 200 times that of the opposition - managed
to convince about one voter in seven to vote for a sales tax increase
in an off-season election specifically timed to maximize their chances
for approval. It's hard to think of a way to make their performance
any more disastrous, short of having mobs chanting "no!" sack their
headquarters building. What a debacle. Only Kim Jong-Il and Fidel
Castro win by greater margins than "No." In some cultures, a loss like
that would lead to abject apologies by the Partnership board, perhaps
followed by ritual suicides. After such a resounding vote of no
confidence, a parliamentary government would resign and appoint a
caretaker government pending new elections. That would also be
appropriate for the leadership of the Partnership after such a waste
of member and taxpayer dollars.

Labels: taxes

Desmoinesdem has previously written about Project Destiny -- a
tri-county joint venture between Polk, Dallas, and Warren Counties to
increase the sales tax in the three communities by one cent--and urged
you to vote against the plan. And now the South Central Iowa
Federation of Labor AFL-CIO, will announce on Thursday that they plan
to oppose the sales tax increase as well. From an advisory put out
today: "Union leaders say voters should consider that "basic needs"
are not being met in the three-county area. A regressive tax to
finance so-called "quality of life" efforts such as bicycle trails,
they say, should not take precedence over citizens' fundamental
needs." With strong labor opposition, who knows how the effort will
fare on Election Day, July 10th. Discussing and talking about the
proposal is no easy subject. Almost two weeks ago, CityView's cover
story was dedicated to the debate over Project Destiny. The story
offered more insight on the project, its supporters and opponents than
the Register or any other local news stations have offered. I
recommend reading the full story to truly understand the debate behind
Project Destiny.

Labels: taxes

Tom Tancredo is now calling on Iowans for Tax Relief and the Iowa
Christian Alliance to reconsider and invite Ron Paul to Saturday's
debate. Maybe he thinks this wins some points from the Paul People,
but I doubt it. I would think the libertarian position on immigration
would be open the borders and let employers hire who they want -- the
diametric opposite of Tancredo's "stop legal immigration" view. Paul,
meanwhile, has taken up the cause of two New Hampshire tax protesters:
'Paul expressed his sympathy for Ed and Elaine Brown, who have been
holed up in their hilltop home for several months, threatening
violence if marshals come to arrest them. The Browns have each been
sentenced to 63 months in prison for crimes related to their refusal
to pay federal income taxes for nearly 10 years. The Browns contend
that there is no law compelling Americans to pay income taxes.' On
which count they are so so wrong, says attorney Daniel Evans in an
exhaustive tax protester FAQ. In the Concord (NH) Monitor: "People who
point this out and fight the tax code and fight the monetary code are
heroic," Paul said in a video that's been linked to several pro-Brown
websites.

Labels: Ron Paul, taxes, Tom_Tancredo

Those of you who live in Polk, Dallas or Warren counties will get a
chance to vote on the "Destiny" tax proposal on July 10. David Elbert
describes the basics in this piece in the Sunday Register. The concept
is, the sales tax would go up from 6 percent to 7 percent in the three
counties. One-third of the revenues would go to "property tax relief,"
one-third to fund cultural attractions like bike trails, and one-third
to local governments to use on whatever they want. The Register
coverage has been mostly cheerleader pieces on how great an idea this
is, and how "Yes to Destiny" would help fund the things that make Des
Moines a great place to live. They've been mostly dismissive of
opposition as based on knee-jerk anti-tax sentiment, or on mistrust of
local governments because of things like the CIETC scandal. As much as
I hate to find myself in agreement with the Grover Norquist wing of
the Republican Party, I strongly oppose this tax proposal.

Labels: taxes

If they have a confessional at the Iowa Department of Revenue, this would be a good time to remodel it. Nobody will be using it for the next 13 weeks or so. Governor Culver has signed the tax amnesty bill, SF 580. The bill forgives penalties and 1/2 of the interest during the amnesty period, which runs from September 4 thorugh October 31 of this year. The Governor's website touts this as a "one-time" amnesty. Yes, one time, just like the last one in 1986. The Tax Policy Blog has a post on the policy implications of tax amnesties: "What we wrote in 1985 holds true today: if lawmakers decide to implement tax amnesty programs, they should be accompanied by fundamental tax reform that makes the tax code simpler and easier to comply with." Iowa has gone in the opposite direction, adding more loopholes targeted tax incentives to its tax law while doing nothing to lower rates or broaden the tax base.

Labels: Chet_Culver, taxes

As the Iowa General Assembly brings this year's session to a close (presumably in the next week or two), we are likely to see the creation of an Iowa Power Fund that disturbs me greatly. Don't misunderstand me, I'm as big a proponent for renewable and alternative fuels as the next guy. However, Chet Culver's little pet project that he campaigned for is possibly going to pass the Iowa Senate and Iowa House without any mechanisms for proper oversight or any real direction for how the money will be doled out or for what purposes. This could end up being a gigantic tax payer funded government slush fund. Remember the last time an Iowa Democratic Governor got a gigantic fund to play around with? Yep, the General Assembly gave Tom Vilsack the Iowa Values Fund and almost since its inception, critics on both sides of the aisle have sent up red flags about how the money is spent, if the results have been suf ficient, and whether there is enough documentation to back up the transactions and results of the projects that were funded by the Values Fund. The biggest critic, ironically, was Ed Fallon who was right on in his criticism of Vilsack and former Economic Development Director Mike Blouin. The truth is, the Values Fund has not lived up to its billing. It has only created a fraction of the output it was expected to unleash and there has been alot of shadows surrounding the oversight of the board.

Labels: biofuel, taxes

He wants the IRS to compile all of the information on you and just send you a refund check or a bill come tax time ... he complains that people don't know how to do their taxes, yet he's going to send them their tax bill/refund and count on them to know whether it's accurate or not? They're going to just assume (there's that word again) that the IRS wouldn't possibly screw them over and sign it and send it back. Which is what the left wants people to do, really. Just shut up and pay what they tell you to pay. ... The current system, as even a lefty at Ezra Klein points out, is designed to make paying taxes an afterthought. You don't see or feel the income being literally picked from your pocket, because you never had it in your hands in the first place. Oh, you see the deductions on your paystub, but that's about it. You never feel the impact of having a chunk of your money being taken from you. Which is a major reason why tax cuts do so much to pump up an economy. All of a sudden, people think they're making more, so they spend it. They're not making any more than they were, they're just keeping more of it in their pocket, rather than send it off to the tax man.

Labels: John_Edwards, taxes

Just when you think that the Iowa Legislature couldn't possibly find stupider tax legislation to propose, they surprise you. Consider SF 547, introduced yesterday by Dubuque's Senator Michael Connolly. It would add the following to Iowa's tax law: "422.76 TAX HAVENS AND SHELL CORPORATIONS. ..." There is so much wrong with this bill that it's hard to know where to begin. The bill in effect imposes state-level foreign exchange controls on Iowa businesses and financial institutions - an economic approach usually associated with failing third-world dictatorships. It would give the Department of Revenue almost unreviewable power ("beyond a reasonable doubt") to impose punitive taxes on offshore investments. Never mind that it's entirely normal to conduct cross-border operations using corporations set up in the country where operations take place. If the sophisticated financial geniuses at the Hoover Building decide you are doing it to avoid taxes, you are out of luck.

Labels: taxes