“Republicans passed a tax giveaway bill today that gives most of the benefits to out-of-state companies and millionaires. It’s a bad deal for most Iowans. It will raise property taxes on families, seniors and small businesses, and it will result in cuts to health care, job creation, education and other critical services.
“Senate Democrats came into the 2018 session promising to support tax reform that would:
Make the tax system fairer for working families and small businesses
Make Iowa businesses more competitive
Take into account our current budget crisis
Tackle corporate tax giveaways, the fastest growing part of the state budget
“By every measure, the tax plan unveiled in the 11th hour of the 2018 session and passed by the Senate today fails every one of those tests. That’s because the bill is filled with giveaways to millionaires, wealthy corporations and people who don’t even live in Iowa.”
Iowa Senate News Release State Senator Joe Bolkcom: (319) 330-9541
For Immediate Release: April 26, 2018
Statement on action today in Senate Appropriations Committee
by Senator Joe Bolkcom, Senate Budget Committee’s Ranking Member
“The budget package being approved today by Senate Republicans is more bad news for Iowa families, seniors, students and communities.
“The ongoing budget crisis in Iowa is the result of the failure of Governor Reynolds and the Republican-controlled Legislature to keep two campaign promises:
Raising family incomes by 25 percent
Creating 200,000 new Iowa jobs within four years
“As a result of their broken promises, Statehouse Republicans have implemented policies that have pushed down incomes, destroyed jobs, cut critical services and piled up state debt.
“Republicans are downgrading our K12 schools and making higher education and job training less accessible and less affordable for working Iowa.
“They have turned Iowa’s respected, state-run Medicaid safety net into a national disaster, and they continue to shower big corporations with tax cuts and tax credits.
“In the 16 months that Republicans have controlled ALL of state government, they have borrowed more than $140 million and slashed $120 million in spending just to balance their budgets. If Iowa families managed their family budgets like this, they’d be forced to declare bankruptcy.
“Senate Democrats are ready to work with Republicans to restore fiscal stability and pass a budget that reflect Iowa values. That means investing more in job-creation efforts and reining in the fastest growing part of the state budget: tax breaks for big corporations.”
Iowa Senate News Release Senate Democratic Leader Joe Bolkcom: (319) 330-9541 For Immediate Release: April 17, 2018
Statement from Senate Democratic Budget Leader Joe Bolkcom
on legislative Republicans’ budget gridlock and mismanagement
“The gridlock between Senate Republicans, House Republicans and Governor Reynolds is making their budget mess even worse. The budget targets released today by Senate Republicans are more proof that the budget crisis is hurting Iowans.
“In the 15 months that Republicans have controlled ALL of state government, they have borrowed more than $140 million and slashed more than $120 million in spending just to balance their budgets. If Iowa families managed their family budgets like this, they’d be forced to declare bankruptcy.
“Governor Reynolds and the Republican-controlled legislature have created this budget mess by failing to keep their campaign promises to Iowans to raise family incomes by 25 percent and create 200,000 new Iowa jobs within four years.
“Their misplaced priorities and mismanagement of taxpayer money is making life harder and reducing opportunities for Iowa families and their communities.”
Iowa State Senator Rita Hart of Clinton asks members of the Senate to sign a letter to President Trump, asking him to protect Iowa farmers, businesses and communities as he makes trade policy changes. Iowa State Senator Rita Hart of Clinton asks members of the Senate to sign a letter to President Trump, asking him to protect Iowa farmers, businesses and communities as he makes trade policy changes. Video of Senator Hart’s Statement to the Senate: https://youtu.be/6ZEUOGoKfnM
IOWA SENATE NEWS For Immediate Release: April 12, 2018
Iowa Senators stand up for Iowa farmers and Iowa’s economy
“…proposed tariffs will have a negative impact on Iowa’s agricultural economy…”
DES MOINES – Twenty-one Iowa State Senators are asking President Donald Trump to protect Iowa farmers, businesses and communities as he makes trade policy changes.
The letter urges the President “to reconsider the economic costs and benefits of your plan to impose new tariffs on imported steel and aluminum. It’s clear to most observers that the inevitable retaliation to proposed tariffs will have a negative impact on Iowa’s agricultural economy by causing other countries to levy burdensome tariffs against Iowa farm products.”
Senator Rita Hart of rural Wheatland wrote the letter and invited all Senators to sign it.
“My husband and I farm near Wheatland. We know firsthand that mistakes in trade policy can have severe consequences on Iowa farmers, small businesses and rural communities,” said Hart, the former chair of the Senate Economic Growth Committee.
The letter noted that “Iowa is the second largest agricultural export state, shipping $14 billion of products abroad last year.” It also drew attention to the fact that proposed U.S. tariffs increasing the cost of imported steel would also hurt Iowa manufacturers. The letter specially mentions Sukup Manufacturing in Sheffield, Iowa. The plant there has 600 Iowa employees and uses 1 million pounds of steel each week to make grain bins and dryers.
The letter was signed by every Democratic member of the Senate and by Independent Senator David Johnson.
-end-
FULL TEXT OF LETTER:
April 12, 2018
Dear President Trump:
Iowa’s prized humanitarian Norman Borlaug said: “Civilization as it is known today could not have evolved, nor can it survive, without an adequate food supply.”
Iowa has a rich history of feeding the world and we need to continue to feed the world without barriers. Iowa is the leading national producer of corn, soybeans, hogs, cattle, and eggs. Iowa is the second largest agricultural export state, shipping $14 billion of products abroad last year. And it’s important to note that 31 percent of farm income comes directly from exports.
For those reasons, we urge you to reconsider the economic costs and benefits of your plan to impose new tariffs on imported steel and aluminum. It’s clear to most observers that the inevitable retaliation to proposed tariffs will have a negative impact on Iowa’s agricultural economy by causing other countries to levy burdensome tariffs against Iowa farm products.
Iowa farmers have already faced several years of low commodity prices.
Any reduction in demand would be devastating, making a bad situation worse.
The potential beef tariff threatens Iowa farmers, who have just gotten back into the Chinese market after a long absence. U.S. beef exports to China totaled more than 3,000 metric tons in the last half of 2017, valued at $31 million.
It’s worth noting that Iowa leads the nation in ethanol production, which results in 42,000 Iowa jobs. In addition, China imports about 60 percent of global soybean trade.
A trade war – even in the short term – creates the potential for a long-term loss of global market share because other countries will move quickly to fill the void if Iowa’s agriculture products become uncompetitive.
Manufacturing is the second largest driver of Iowa’s economy. The state economy is heavily dependent on the 3,000-plus factories across the state, many of whom are dependent on the farm economy. For example, the 600 employees of Sukup Manufacturing make iconic grain bins and dryers in rural Sheffield, Iowa, using 1 million pounds of steel each week.
We urge you, Mr. President, to reconsider this strategy because of the negative consequences on Iowans who farm, those who live in rural communities, and those whose livelihoods depend on products whose markets are threatened by a trade war with China.
Sincerely,
Senator Chaz Allen (D)
Senator Tony Bisignano (D)
Senator Joe Bolkcom (D)
Senator Nate Boulton (D)
Senator Tod R. Bowman (D)
Senator Jeff Danielson (D)
Senator William A. Dotzler Jr. (D)
Senator Robert E. Dvorsky (D)
Senator Rita Hart (D)
Senator Robert Hogg (D)
Senator Wally E. Horn (D)
Senator Pam Jochum (D)
Senator David Johnson (I)
Senator Kevin Kinney (D)
Senator Jim Lykam (D)
Senator Liz Mathis (D)
Senator Matt McCoy (D)
Senator Janet Petersen (D)
Senator Herman C. Quirmbach (D)
Senator Amanda Ragan (D)
Senator Rich Taylor (D)
Iowa Senate News Release For Immediate Release: March 9, 2018
Statement by Senator Joe Bolkcom on updated revenue estimates
“You can’t put lipstick on a pig. No matter how Statehouse Republicans try to spin it, they still have a giant budget mess on their hands.
“Here’s the truth:
Governor Reynolds and legislative Republicans have NO agreement on how to balance the current year’s budget.
Governor Reynolds and legislative Republicans have NO plan for balancing next year’s budget.
Statehouse Republicans have put $144 million on the state’s credit card in an attempt to balance FY17 budget.
Governor Reynolds and legislative Republicans are moving a bloated tax plan that gives most of the benefits to millionaires and big corporations.
Governor Reynolds and legislative Republicans are laying the groundwork to break a promise to Iowans that will result in higher property taxes.
“What’s to blame? An agenda by Governor Reynolds and legislative Republicans that includes grossly under-funding our local schools; turning Iowa’s respected, state-run Medicaid safety net into a national disaster; weakening the rights of workers and driving down wages; and showering out-of-state corporations with an all-you-can-eat buffet of tax cuts and tax credits.
“Senate Democrats still stand ready to work with legislative Republicans and the Governor on a mid-course correction that will restore fiscal stability to our state budget by investing in our schools and job-creation initiatives, and taking a serious look at out-of-control spending on tax credits.”
Claim #1: “Iowans are getting a $1,000 average tax cut.”
This claim only counts the Iowans who are getting a tax cut under the proposal. It ignores the nearly one-third of Iowans who either get no benefit or will actually see a tax increase.
Over 20 percent of Iowans – one out of five – with incomes over $30,000 will see an average tax increase of nearly $1,000 with this legislation.
On average, Iowans with incomes under $250,000 will receive a tax cut of less than $500 – less than half of what Republicans claim.
Claim #2: “This bill gets rid of giveaways to internet companies like Google and Facebook.”
The bill specifically says the changes don’t apply to companies already doing business in Iowa. That means Facebook, Microsoft, Google and Apple are still eligible to receive tax incentives under the program.
Claim #3: “This bill cuts back on tax credits.”
The only credits that are eliminated immediately are the solar energy system tax credit and the ethanol promotion tax credit.
The solar system tax credit has been successfully used by Iowa businesses and farmers to save money in their operation as they try to remain competitive. This credit has also helped support businesses employing over 700 across the state.
The bill does make minor changes to the state’s research activities credit program, but those changes are essentially just to restore the program to what its intent was under reforms passed by Democrats in 2010.
The bill cuts back the High Quality Jobs program and says it will be repealed in the future. We have seen in the past that these sunsets can easily be ignored.
Also, the overall business tax incentive cap remains the same. This means the state can replace one tax giveaway program with another in the future.
The bill cuts corporate income taxes by more than 50 percent. However, those cuts would go almost exclusively to Iowa largest corporations. Half of Iowa’s smaller corporations will actually see a tax increase.
Cuts in state spending on many programs will result in an increase in property taxes.
More school districts will be subject to the “budget guarantee” and will rely on property tax increases to balance their budgets. Public safety and mental health service shortfalls will fall back onto local governments who are reliant on property taxes. And Senate Republicans have already started the process to get rid of the commercial property tax backfill, shifting even more costs for local services onto property taxpayers.
Bottom line:
Contrary to the claims of Senate Republicans, their tax plan is NOT fair to many Iowans, it does NOT make Iowa more competitive with other states, and it certainly does NOT take into account the ongoing budget crisis.
Iowans understand that the tax plan offered by Senate Republicans must be viewed in light of disastrous tax-cut plans approved in Kansas and Oklahoma, which have resulted in massive cuts to education, public safety and other vital services.
Iowans also see that this plan by Iowa Senate Republicans will further hamper efforts to train more Iowans for the jobs of tomorrow, to increase family income and to help create more opportunities for our children and grandchildren.
“The tax plan recently released by Iowa Senate Republicans is more fiscally irresponsible than many Iowans imagined, according to a nonpartisan analysis released today.
“Contrary to the claims of Senate Republicans, their tax plan is NOT fair to many Iowans, it does NOT make Iowa more competitive with other states, and it certainly does NOT take into account the ongoing budget crisis.
“Iowans understand that the tax plan offered by Senate Republicans must be viewed in light of disastrous tax-cut plans approved in Kansas and Oklahoma, which have resulted in massive cuts to education, public safety and other vital services.
“Iowans also see that the plan by Iowa Senate Republicans will further hamper efforts to train more Iowans for the jobs of tomorrow, to increase family incomes and to help create more opportunities for our children and grandchildren.”
Last week, Republicans who control the Iowa Senate came out with a 130-page, $1 billion tax plan. Much like what happens in Washington D.C., we’ve seen no spreadsheets to give us a sense of the financial impact the proposal will have on Iowans and our state.
In addition, most Iowans have no idea what’s in SF 2383 because it’s being rushed through before taxpayers can get up to speed and have their say.
This proposal could wreck Iowa’s economy the way a similar plan wrecked Kansas. Forbes describes the ongoing crisis Kansas has faced in recent years because of fiscal mismanagement.
WATCH – Democratic state senators speak out on the extreme Kansas-style tax plan being proposed for Iowa.
Democrats in the Iowa Senate are willing to work on a bipartisan tax plan that:
Is fair to all Iowans.
Takes into account our current budget situation.
Reins in corporate tax credits that don’t work or are too expensive.
Makes Iowa’s tax laws easier to understand.
SF 2383 is expected to come up for a vote by the full Senate this week.
If you’re concerned, please contact your state senator. Call the Senate switchboard at 515-281-3371 or get your senator’s email and phone number at www.legis.iowa.gov/legislators/find.
Iowa Senate News Release For Immediate Release: February 21, 2018
DES MOINES — Senator Pam Jochum of Dubuque, the lead Democrat in the Iowa Senate on tax issues, responded to a tax plan released today by Senate Republicans.
Although the proposal from the Senate Republicans leaves many unanswered questions, Jochum provided this initial response:
“The tax plan offered by Senate Republicans today must be viewed in light of disastrous tax-cut plans approved in Kansas and Oklahoma, which have resulted in massive cuts to education, public safety and other vital services. In fact, Kansas abandoned failed trickle-down tax cuts and Oklahoma’s Republican Governor is actually proposing higher taxes to dig her state out a fiscal mess.”
Today, Jochum renewed her offer to work in a bipartisan manner on a tax plan that meets these principles:
Tax reform must be fair. Iowa’s tax system has a number of tax brackets in an attempt make the income tax system progressive so that those with lower incomes pay at lower rates. However, according to the Iowa Policy Project, when all state and local taxes are accounted for, Iowa’s lowest income earners pay the largest portion of their income in taxes. Changes to Iowa’s tax system should address this situation and not make this problem worse.
Tax reform must make Iowa’s tax code more transparent so Iowa can show its true competitiveness to the nation. Iowa’s tax code has become a confusing collection of credits, deductions and exemptions that has left the state with high tax rates that do not accurately reflect the cost of living and doing business in Iowa. Our tax rates appear to be among the highest in the nation — but according to the Tax Foundation, the amount paid by Iowans through our tax system ranks Iowa in the middle of the pack.
Tax reform needs to take into account our current budget situation. We just completed a legislative session where funding was slashed for nearly every part of state government, and there is no sign the situation will be improving next year. We must not repeat the mistakes of Kansas, which passed massive tax cuts that have resulted in a continual budget crisis where schools are underfunded and has forced the state to balance the budget by stealing from road funds and raising other taxes.
Tax reform needs to examine corporate tax credits. We have cut state funding for vital state programs that serve some of our youngest and most vulnerable Iowans. So far corporate tax credits have been exempt from these cuts. We must determine if these corporate tax credits a good return on the investment and benefit Iowans, not just those few businesses.
