# Taxes



MidAmerican and Iowa wind farm property tax

(The author of the Iowa Renewable Energy Farmer blog raises an important question about a large wind farm in northwest Iowa. - promoted by desmoinesdem)

I’ve been trying to determine if MidAmerican Energy Company (MEC) is paying the correct amount of property tax on their wind farm property in Pocahontas County.  As it turns out, this is not an easy task for an interested Iowa tax payer. The reason for this winter “adventure” stems from the county supervisors proposed creation of a Tax Increment Finance district around MEC’s wind project. If they proceed, tax revenue would be diverted away from our school district, fire department, etc., for other projects in the county. An individual taxpayer within the school district will mostly likely see their tax rates increase as a result.  Since the county is debating where to spend their “windfall” revenue, I became curious about how the county determined the tax rates for an asset with over a $1/2 billion in value. In the interest of full disclosure, I have a company that offers consulting for wind farm development, so I have some experience with this issue. (continues below)

 

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Weekend open thread, with highlights from latest Des Moines Register poll

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread.

The Des Moines Register continues to release bits and pieces from the latest Iowa poll conducted by Selzer & Co. After the jump I’ve posted some of the more important findings, other than the IA-Sen numbers, which I discussed in this post. Like the Iowa .Gif-t Shop blog, I found it bizarre that the Register asked respondents whether they’d be “thrilled,” “mildly happy,” or “don’t really care” about the prospect of certain national retailers opening an Iowa store.

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Branstad administration's fertilizer plant deal looks even worse

The Egyptian company that received the largest tax incentive package in Iowa history has a subsidiary accused of defrauding the federal government out of $332 million, Ryan Foley reported yesterday in a must-read story for the Associated Press. Excerpts from Foley’s article are after the jump, but I strongly recommend reading the whole piece.

Iowa Economic Development Authority Director Debi Durham admitted that the federal lawsuit over improper contracts “did not come up in our due diligence,” which is no surprise. Durham’s negotiating strategy seems to have been not to question anything Orascom executives told Iowa officials. Although Governor Terry Branstad has claimed Iowa landed the fertilizer plant deal “by the skin of our teeth,” evidence suggests Orascom would have invested in Iowa even without generous state and local tax incentives.

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State of the Union and Rubio response discussion thread

President Barack Obama delivers another State of the Union address tonight, and U.S. Senator Marco Rubio of Florida is set to give the Republican response. I will miss most of the president’s speech but plan to watch the replay later and will update this post with highlights. Meanwhile, feel free to comment on any topics raised during the speeches in this thread.

UPDATE: Highlights from the speeches and reaction from the Iowans in Congress are after the jump.

I find it depressing that when I came home to catch up on the news, the blogosphere and twitterverse were obsessing over Rubio taking a drink of water during his remarks. So sue him, he’s not the most camera-savvy politician in Washington (yet). Who cares?

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Lower-income Iowans have higher state, local tax burden

As Iowa legislators consider what to do with the state’s nearly $1 billion budget surplus, Republicans are advocating a $750 income tax credit for “every average Iowa family.” But that credit would do nothing for lower-income Iowans who have the largest state and local tax burden. The latest report by the Institute on Taxation and Economic Policy shows yet again that in Iowa and across the country, the bottom 20 percent of households by income pay the largest percentage of their income in state and local taxes (mostly property, sales and excise taxes).

The full report is available on the institute’s website. For the Iowa data, click here or here. Some charts, facts and figures on Iowa’s regressive tax system are after the jump. In my opinion, the bulk of Iowa’s surplus should go toward restoring and improving state services that have been underfunded for many years. The most valuable tax policy change would be increasing the earned income tax credit that benefits working families. Cutting personal income taxes should be way down the priority list, especially since high-income Iowans can already use a wide range of deductions to lower their income tax bill.

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Branstad's new property tax plan and other Condition of the State news (updated)

Governor Terry Branstad just finished delivering his annual Condition of the State speech to Iowa House and Senate members. He unveiled a new property tax reform plan, which would cut commercial property taxes by 20 percent over four years. Previously the governor had called for cutting commercial property taxes by 40 percent. Branstad also urged legislators to approve the key points of education reform proposals he released yesterday. Finally, he outlined three policies that, in his view, would help Iowa become the healthiest state in the country.

Links and more details are after the jump. I will update this post later with more information and reaction. The video of Branstad’s speech will be available on IPTV.org and will be broadcast statewide on Iowa Public Television at 6:30 pm on January 16.

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Themes from the Iowa legislature's opening day in 2013

The Iowa House and Senate began their 2013 session yesterday with the usual welcoming speeches from legislative leaders and the ritual of choosing desks for each lawmaker in the chambers. Judging from this photo, returning legislators get first dibs.

As was the case in 2012, social issues like abortion and same-sex marriage were absent from the opening-day speeches. Republican leaders emphasized the need to cut both property and income taxes. Iowa House Speaker Kraig Paulsen also claimed credit on behalf of Republicans for Iowa’s improving fiscal condition. House Majority Leader Linda Upmeyer spent a fair amount of time criticizing Congress before calling for state action to improve education and cut taxes. House Speaker Pro Tem Steve Olson repeated some themes of last year’s election campaign and quoted U.S. Senator Marco Rubio of Florida. Similarly, Senate Minority Leader Bill Dix concentrated on tax reforms.

Senate Majority Leader Mike Gronstal focused on education and workforce training programs to address “Iowa’s skill shortage.” Senate President Pam Jochum focused on health-related issues: improve mental health services, helping elderly people stay in their own homes, and expanding Medicaid, which she described as “the biggest opportunity for this session to make a positive difference for Iowans.” Iowa House Minority Leader Kevin McCarthy emphasized the need for bipartisan work on a range of issues: education, mental health care delivery, the transition to a new maximum security prison, and protecting natural resources.

Follow me after the jump for excerpts from the opening-day speeches by legislative leaders (as prepared for delivery). I included the full text of Jochum’s remarks, because her personal journey says a lot about who she is. Jochum also paid a lovely tribute to former Republican State Senator Pat Ward, who died last year.  

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Steve King wants you to know he's no sellout

Congressional press releases don’t always tell you about important votes, but they always tell you what members of Congress want you to know about them. Representative Steve King (R, IA-04) didn’t release a statement last week explaining his vote to let John Boehner stay on as House speaker. But I think he’s a little worried about his street cred as a bold conservative, because he quickly moved to flaunt his work on some hopeless right-wing causes.  

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More details on the farm bill extension Congress just approved

The U.S. Senate and the House Agriculture Committee approved versions of a new five-year farm bill last summer, but discontent within the House Republican caucus kept Speaker John Boehner from bringing the bill up for a vote in the full chamber. Iowa Republican Tom Latham signed a discharge petition seeking to force a vote, while Steve King promised to work toward passing the bill during the lame-duck session.  But Boehner never put the five-year farm bill on the House calendar.

With time running out before U.S. law reverted to the 1949 bill provisions, House and Senate Agriculture Committee leaders agreed last week to push for a one-year extension of farm programs. But that bill never came up for a vote either. Instead, negotiators added a nine-month partial extension of farm programs to the “fiscal cliff” tax agreement. Since Tuesday I’ve been looking into the details of what Congress approved on farm policy. It’s not pretty.

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Year-end Congressional scramble discussion thread (updated)

Members of Congress are in Washington today trying to make last-minute deals to avoid supposedly dire consequences on January 1. So far it appears likely that some kind of one-year extension of current farm policies will pass in order to avoid a huge price spike for milk and problems for agricultural producers. UPDATE: A nine-month farm bill extension was added to the fiscal cliff bill.

Lots of plans are floating around to deal with the so-called “fiscal cliff”: Bush income tax cuts (last extended for two years in December 2010) are set to expire, along with lower payroll tax and estate tax rates. Meanwhile, various budget cuts are due to go into effect in January, including a “sequester” of federal spending on defense and other programs but also lower Medicare payments to doctors. At this point, I would be surprised if we don’t go over the cliff, and I agree with Senator Tom Harkin that no deal is better than a bad deal.

I will update this post throughout the day and evening with news on Congressional voting. After the jump I’ve enclosed some links on the latest proposals floating around the Capitol. Tremendous hypocrisy is on display. If deficit hawks believed their own propaganda, they would embrace higher taxes and lower spending to solve this supposedly dire threat to the U.S. economy. UPDATE: More news is below.

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Five takes on Asian Americans trending Democratic

President Barack Obama’s 50-point edge over Mitt Romney among Asian American voters was one of the most surprising election results for me. Growing up during the 1980s, it seemed like all of my Asian American friends’ parents were Republicans. Bill Clinton received an estimated 31 percent of the Asian American vote in 1992, compared to 62 percent for Obama in 2008 and 73 percent for Obama this year.

Since the election, I’ve read several attempts to explain this trend. The most interesting links are after the jump.

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IA-04: Vilsack's case and King's closing arguments

The campaign in Iowa’s fourth Congressional district set records for fundraising by a U.S. House incumbent and challenger in Iowa and attracted nearly $5 million in spending by outside groups. For weeks, television stations around the district have been saturated with ads for and against five-term Representative Steve King and Democratic challenger Christie Vilsack.

A final news roundup on IA-04 is after the jump, including Vilsack’s key campaign themes and King’s closing message to voters.  

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IA-03: Least inspiring campaign ever?

I planned to write several posts this fall about the third Congressional district race between Representatives Tom Latham and Leonard Boswell. Instead, every time I sat down to write about the campaign, I found myself turning to other topics. Central Iowa radio and television stations have been so over-saturated with cookie-cutter attack ads against both candidates. If a political junkie like me finds it off-putting, I can’t imagine how disengaged other people feel when they hear the beginning of yet another negative commercial.

Neither Latham nor Boswell has offered a compelling case for re-election, but after the jump I review the main messages from both campaigns and from various outside groups that have been advertising in Des Moines and Omaha.

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Final IA-02 news roundup: Little suspense for Loebsack

Going into election day two years ago, Representative Dave Loebsack appeared to be in real danger of losing his seat in Congress. The Democratic Congressional Campaign Committee was running attack ads against Republican challenger Mariannette Miller-Meeks, who had loaned her campaign about a half-million dollars in the absence of major financial support from the National Republican Congressional Committee. The American Future Fund was bashing Loebsack on television. Loebsack ended up winning re-election by only about 11,500 votes in what should have been a safe Democratic district. If not for the Iowa Democrats’ early voting program, Loebsack might have been swept up by the wave.

This year’s campaign in Iowa’s second Congressional district is winding up without the suspense of 2010. A final review of Loebsack’s race against Republican John Archer is after the jump.

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Iowa Senate district 6: Mary Bruner vs Mark Segebart

Democratic candidates for the state Senate haven’t fared well in western Iowa lately, so the new Senate district 6 hasn’t been on my radar, even though it’s an open seat. However, campaign finance reports indicate that Democrats are not conceding this district, so I decided to post a profile of the race. Background on both candidates is below, along with a district map and some of the campaign rhetoric voters have been hearing.

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Four strategies for interest group Iowa legislative endorsements

Many candidates for the Iowa House and Senate tout endorsements by outside groups in their campaign communications. Some of those groups pay for direct mail, phone calls, or even advertising supporting their endorsed candidates.

Iowa’s influential political action committees and advocacy groups have very different ways of getting involved in the state legislative campaign. Follow me after the jump for examples of four distinct strategies.

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Vander Plaats group on radio in two races, conspicuously absent in one

Three-time candidate for Iowa governor Bob Vander Plaats has made news this fall primarily on the “No Wiggins” campaign trail. However, the social conservative group he runs is supporting some Republican Iowa Senate candidates as well.

Last week the FAMiLY Leader launched radio advertising campaigns in two competitive Senate races–but notably, not in the district where Vander Plaats’ longtime right-hand man Matt Reisetter is running.  

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Fertilizer company plans $1.7 billion expansion in Woodbury County

After landing significant state and local tax incentives, a large corporation confirmed plans yesterday to expand its fertilizer plant in Port Neal (Woodbury County). Officials hailed the “single largest capital investment” in Iowa history, eclipsing the $1.4 billion fertilizer plant project announced in September for Lee County.

More details and reaction to the CF Industries project are after the jump.

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Iowa House district 43: Chris Hagenow is worried

In a sure sign that Republicans consider House district 43 competitive, State Representative Chris Hagenow’s campaign is spending tens of thousands of dollars on television commercials attacking his Democratic challenger Susan Judkins. The ads repeat several messages a Republican push-poll used against Judkins earlier this fall. My transcript and description of the commercial is after the jump. Bleeding Heartland previewed the House district 43 race here.

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Iowa Senate district 30 campaign update

Last time Bleeding Heartland discussed the Iowa Senate district 30 race, two-term Democratic incumbent Jeff Danielson and his Republican challenger Matt Reisetter had just launched their first television commercials in the Waterloo/Cedar Falls area. Both candidates have followed up with advertising that I’ve enclosed after the jump.

I applaud the openness of both campaigns in Senate district 30. Most of the Iowa House and Senate radio and television commercials from last cycle were never uploaded to YouTube, and I expect the same lack of transparency this year.

As for content, Reisetter’s third tv ad includes one of the most ludicrous interpretations of an Iowa legislative vote since the infamous “heated sidewalks” of 2010.

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IA-02: Big issues, cheap shots

Medicare and alleged “job-killing” policies are the focus of the latest television commercials from Representative Dave Loebsack and his GOP challenger John Archer. Meanwhile, the National Republican Congressional Committee is taking cheap shots over a committee hearing Loebsack attended three and a half years ago.

Videos and transcripts of the latest television commercials in Iowa’s second Congressional district are after the jump. Bleeding Heartland covered previous ads from this race here, here, and here.

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IA-01 news roundup: Radio debate and lots of television ads

It’s time to catch up on news from the first Congressional district campaign between three-term Democratic Representative Bruce Braley and his two-time Republican challenger Ben Lange. After the jump I’ve posted my take on yesterday’s debate on Iowa Public Radio, along with videos and transcripts of the latest television commercials by the campaigns and outside groups. (Bleeding Heartland covered earlier tv ads in the IA-01 race here, here, and here.)  

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Abortion trips up Romney on pivot to center

Republican presidential nominee Mitt Romney stopped in Iowa yesterday to push his economic and farm policies. However, his comments on abortion during an interview with the Des Moines Register overshadowed his speech to supporters at a rally in rural Van Meter (Madison County).

UPDATE: Added the fuller version of Romney’s remarks and Paul Ryan’s reaction below.

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Iowa presidential campaign news roundup (updated)

Fewer than 30 days remain until the presidential election. Any comments about the race in Iowa or nationally are welcome in this thread. I’ve compiled recent news, analysis, and advertising after the jump. I will update as needed, especially if any new Iowa poll comes out today. Gallup’s national tracking poll shows Mitt Romney gaining ground since last Wednesday’s presidential debate.

UPDATE: Rasmussen Reports has President Barack Obama leading Romney in Iowa by 49 percent to 47 percent, based on a survey of 500 likely voters conducted on October 7 (margin of error plus or minus 4.5 percent). Rasmussen’s previous Iowa poll had Romney leading 47 percent to 44 percent.

SECOND UPDATE: Added latest national polling data at the end of this post.

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Republicans push-polling for Hagenow in Iowa House district 43

A push-polling campaign with live telephone interviewers is underway in Iowa House district 43, where two-term Republican State Representative Chris Hagenow faces Democrat Susan Judkins. Following my own advice, I took detailed notes on last night’s call.

UPDATE: I am hearing reports of similar push-polls against John Forbes, Democratic candidate in House district 40, and John Phoenix, Democratic candidate in House district 38. If you have received these calls or push-polls targeting other Democratic House candidates, please let me know: desmoinesdem AT yahoo.com. If you get one of these calls, take notes if possible, and don’t be afraid to ask the caller to repeat the question.

SECOND UPDATE: Mark Blumenthal explained the difference between a real opinion survey and a push-poll on his Mystery Pollster blog. Whereas a real poll is designed to collect data from respondents and measure opinions, a push-poll is all about spreading negative information about a political opponent to as many people as possible, under the deceptive guise of conducting a survey.

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