# Taxes



Report shows changes in Iowa children's health, well-being over last decade

Last week the Des Moines-based Child & Family Policy Center released “Iowa Kids Count 2010: Trends in the Well-Being of Iowa Children.” Highlights from the report are after the jump. While several indicators showed improvement in children’s health between 2000 and 2010, the economic circumstances of Iowa children and families deteriorated significantly.

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Can a divided legislature agree to raise Iowa's gasoline tax? (updated)

Iowa’s well-documented problems with roads in disrepair and deficient bridges have prompted many calls for raising the gasoline tax in recent years. I’ve been skeptical that a divided state legislature would agree to raise an unpopular tax during an election year-session following redistricting. However, key lawmakers continue to insist that a gas tax hike is on the table. Arguments for why this proposal will and won’t pass are after the jump.

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Property tax plans and highlights from Branstad's legislative speech

Governor Terry Branstad delivers his “Condition of the State” address to the Iowa House and Senate this morning. Iowa Public Television will livestream the speech here, and I’ll update this post later with highlights. The governor’s commercial property tax reform plan will be a centerpiece of the address. As part of that plan, Branstad indicated yesterday that he will seek unprecedented limits on local government taxing authority in Iowa.

UPDATE: A few details from the governor’s proposed budget are now below, along with some reaction from Democratic lawmakers. Branstad is asking for a significant spending increase in the 2013 fiscal year.

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Iowa legislature 2012 opening day linkfest

The Iowa legislature’s 2012 session begins today with several major policy reforms on the agenda. Making progress on even one of those issues would be daunting under any circumstances, but particularly during an election year when different parties control the Iowa House and Senate. Lots of links are after the jump.

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Iowa political reaction to jobs report, recess appointments (updated)

The Bureau of Labor Statistics released new employment figures yesterday, showing nonfarm payroll employment up by 200,000 in December 2011, and the unemployment rate down slightly to 8.5 percent. Several members of Congress from Iowa cited the news a Their statements are after the jump.

I’ve also enclosed reaction from U.S. Senators Chuck Grassley and Tom Harkin to President Barack Obama’s recess appointments of Richard Cordray to head the Consumer Financial Protection Bureau and three members of the National Labor Relations Board. While Harkin welcomed Cordray’s appointment, Grassley slammed the president for “upending years of Senate practice and legal precedent.” Grassley was among Senate Republicans who filibustered Cordray’s confirmation last month.

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The 10 biggest Iowa political blunders of 2011

Let’s review the most boneheaded moves from the year in Iowa politics.

This thread is not about wrongheaded policy choices. It may be stupid to cut early childhood education programs, kneecap the state Environmental Protection Commission, or pass an “ag gag” bill that would never survive a court challenge. Yet all of those actions carry potential political benefits, since they appeal to well-funded interest groups or a large group of voters.

My top ten list of Iowa politicians’ mistakes is after the jump.

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The most brilliant Iowa political moves of 2011

It’s the most list-making time of the year. Let’s start talking about Iowa political highlights of 2011.

This thread is devoted to master strokes. I don’t mean our elected officials’ wisest actions, or the policy choices that affected the greatest number of Iowans. I mean acts of such skill that even opponents had to grudgingly acknowledge their brilliance.

My top picks are after the jump. Tomorrow Bleeding Heartland will review the year’s most bewildering acts of incompetence. On Thursday we’ll look at the events that are likely to have the greatest long-term impact on Iowa politics.

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Iowans split on party lines as House rejects Senate payroll tax cut bill

The payroll tax cut, extended unemployment benefits, and a “doc fix” affecting Medicare reimbursements look more likely to expire on December 31 after today’s votes in the U.S. House. Republicans voted to go to conference to resolve differences between their approach to extending the payroll tax cut and the bill the U.S. Senate approved on Saturday.  However, Democrats don’t plan to appoint anyone to the conference committee.

Details on today’s votes and reaction from members of Iowa’s House delegation are after the jump.

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Iowa Democrats support GOP payroll tax extension in House

Only ten Democrats in the U.S. House supported a bill approved last night to extend the payroll tax cut and some unemployment benefits. All three Iowa Democrats crossed party lines to vote for this legislation, which has drawn a rare veto threat from the White House.

UPDATE: Scroll down for Representative Dave Loebsack’s statement on this vote.

SECOND UPDATE: I’ve added a statement from Representative Steve King.

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Payroll tax extension news roundup

A year ago, former President George W. Bush’s income tax cuts for all brackets were due to expire on December 31. Republicans had President Barack Obama and Congressional Democrats on the defensive, not wanting to be seen as raising taxes in a tough economy. Now the tables are turned as a payroll tax cut benefiting all wage earners will expire at the end of the year unless Congress acts otherwise. Democrats in Washington and around the country see this issue as a political winner.

Last week the U.S. Senate defeated two more proposals for extending the payroll tax cut. Meanwhile, the Democratic Congressional Campaign Committee and the Iowa Democratic Party used the controversy to create bad publicity for Representative Tom Latham (IA-04) and Representative Steve King (IA-05).

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IA-03: Boswell slams Mitt Romney on taxes, middle class

While former Massachusetts Governor Mitt Romney campaigned in Des Moines last week, Representative Leonard Boswell publicly criticized the Republican presidential front-runner for the second time this month. The eight-term Democrat authored a guest column in the November 16 Des Moines Register criticizing Romney’s position on health care for veterans. His latest attack focused more broadly on Romney’s position on taxes and entitlement programs.

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Michigan GOP presidential debate discussion thread

Eight presidential candidates are debating tonight at Oakland University in Rochester, Michigan. CNBC is broadcasting the debate beginning at 7 pm central time. Economic issues are supposed to be the focus of the discussion, but I imagine Herman Cain won’t be able to avoid some discussion of the spiraling sexual harassment allegations against him.

Former Massachusetts Governor Mitt Romney has a bit of a home-court advantage in Michigan, where his father was once governor. The Los Angeles Times published a damning report this week about Romney’s business practices at Bain Capital, which used “shell companies in two offshore tax havens to help eligible investors avoid paying U.S. taxes.” I expect Romney will be asked to comment on that report tonight.

I will update this post later with highlights, but meanwhile use this thread for any comments about the debate or the GOP presidential race.

UPDATE: A few thoughts are after the jump.

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Iowa House district 30 GOP primary preview: Jim Carley vs Kim Pearson?

Jim Carley announced last week that he is running as a Republican in the new Iowa House district 30. Carley’s background is typical for a GOP statehouse candidate, but his announcement was unusual in one respect. A Republican incumbent already represents Iowa House district 30, and State Representative Kim Pearson has not decided yet whether to seek re-election.

Comments from both candidates about a possible primary contest are after the jump.

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IA-03: Rove's group launches second anti-Boswell tv ad

The Crossroads GPS group headed by former George W. Bush spinmaster Karl Rove is spending $160,000 to run a new commercial about Representative Leonard Boswell on television stations in Des Moines and Omaha. Those media markets reach most residents of Iowa’s new third Congressional district, where Boswell will face Republican Representative Tom Latham in 2012.

Like the first commercial Rove’s group ran against Boswell this summer, the new ad is dominated by boilerplate conservative talking points against House Democrats. The transcript and analysis are after the jump.

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Iowa Senate district 18: Early vote lead for Liz Mathis

UPDATE: More recent absentee ballot numbers are here, and a precinct-level analysis of the early voting is here.

Two weeks before the special election in Iowa Senate district 18, the number of absentee ballots requested and returned favored Democratic candidate Liz Mathis over Republican Cindy Golding by a two to one margin. Details are after the jump, along with other recent news about the race.

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Nearly a quarter of Des Moines metro area bridges are deficient

Transportation for America released a new report today examining structurally deficient bridges in U.S. metro areas. Among communities with a population between 500,000 and 1 million, the Des Moines metro ranked fourth-worst with 24.3 percent of area bridges in the structurally deficient category.

UPDATE: Representative Leonard Boswell’s comments on this report are at the end of this post.

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Gas tax fight ahead for 2012 Iowa legislative session

Iowa House and Senate members have plenty of work to do during the next legislative session, scheduled to begin in January 2012. Governor Terry Branstad wants to pass a big education reform package as well as commercial property tax cuts he wasn’t able to get through the legislature this year. Lawmakers also face a deadline for adopting a new system for funding and delivering mental health services. Disagreements over the state budget pushed the 2011 legislative session two months beyond its original adjournment date, and I doubt Democrats and Republicans will find it easier to agree on spending priorities in 2012. Election years aren’t typically the most productive times at the state capitol.  

As if there weren’t enough contentious issues on the table, the governor’s transportation advisory commission will urge legislators to approve an 8-cent to 10-cent gas tax increase.  

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Iowa legislators' pay under scrutiny

The Des Moines Register’s editorial board called out Iowa legislators on Sunday for using schemes to inflate their wages and pensions while minimizing taxes. The editors also pointed out that lawmakers are not held accountable for how they spend money intended to reimburse job-related expenses.

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Iowa Senate district 18 Democrats formally nominate Mathis (updated)

Democratic delegates in Iowa Senate district 18 nominated former television news anchor Liz Mathis last night for the November 8 special election. No other candidate sought the nomination. Republicans picked businesswoman and Linn County GOP co-chair Cindy Golding in a three-way nominating contest last week.

Both Mathis and Golding indicated yesterday that they will focus on jobs and the economy rather than social issues during the short campaign.

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CNN/Tea Party Express GOP debate discussion thread

Eight Republican presidential candidates will debate for the second time in less than a week tonight at 7 pm central time. I expect former Massachusetts Governor Mitt Romney and Representative Ron Paul to have a go at Texas Governor Rick Perry, like they did during last week’s debate. Representative Michele Bachmann has been trying to distinguish herself from Perry too lately. I see the other four candidates mainly fighting not to be ignored by the moderators.

I’ll update this post later, but meanwhile here’s a thread to talk about the debate or the presidential race in general.

UPDATE: First thoughts on the debate and excerpts from the transcript are after the jump.

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Report exposes "massive CEO rewards for tax dodging" (updated)

Salaries for chief executive officers of major U.S. corporations rose sharply in 2010 despite the weak national economy, and various tax-dodging strategies allowed highly profitable companies to pay little or no corporate income taxes. That’s a small taste of the distubring news from the Institute for Policy Studies’ report on Executive Excess: CEO Rewards for Tax Dodging.

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Branstad vetoes tax break for 225,000 Iowa households

Governor Terry Branstad has nixed Iowa Democrats’ top tax policy priority for the second time this year. The governor signed the broad budget “standings” bill yesterday, but used his item veto power to eliminate several provisions, including an expansion in the earned income tax credit for working people. The governor’s veto message said,

“This change is estimated to reduce revenue to the state general fund by $28.5 million for fiscal years 2012-2013,” Branstad said. “It is my desire to approach tax policy in a comprehensive and holistic manner. As such, I urge members of the House and Senate to continue to work with my office on an overall tax reduction package that both fits within or sound budgeting principles while reducing those taxes that are impeding our state’s ability to compete for new business and jobs.”

Branstad vetoed the same tax credit expansion in a compromise bill the legislature approved in April. At that time, he also cited his “desire to approach tax policy in a comprehensive and holistic manner.”

Spending $28.5 million over two years would have helped at least 225,000 Iowa households, more by some calculations. The earned income tax credit goes entirely to lower-income and middle-income families earning less than $48,000 per year.

In a press call this morning, AFSCME Council 61 president Danny Homan described Branstad’s action as “mean-spirited,” and I would agree. In this economy, why would you block a little extra help to working households? Iowa Senate Ways and Means Committee Chair Joe Bolkcom noted in a statement, “Studies show that the Earned Income Tax Credit is the most effective antipoverty program for working families. Plus the money is spent at our small and Main Street businesses, helping to further spur our local economy.”

Branstad’s veto doesn’t look like smart politics either. During the 2012 legislative session, he wants to pass a major education reform package, comprehensive property tax reform and corporate income tax cuts. Yet he’s tanked the top Democratic tax priority twice. He is forging ahead with closing Iowa Workforce Development offices, even though saving those offices was high on the Democrats’ list throughout the 2011 session. Democrats have only a narrow Iowa Senate majority, but that majority held together for the last six months. I don’t understand why Branstad thinks he’ll be able to get any of his priorities through the upper chamber next year.

The Iowa Fiscal Partnership published a short piece on why expanding the earned income tax credit is good policy. I’ve posted that piece after the jump, along with the full text of Bolkcom’s statement on the Branstad veto and a comment from U.S. Representative Bruce Braley (IA-01).

Iowans for Tax Relief, an advocacy group that claims to be “the taxpayers’ watchdog,” was missing in action today. The organization endorsed Branstad in the 2010 gubernatorial primary as well as the general election. Iowans for Tax Relief criticized Branstad’s veto of the earned income tax credit expansion in April. Since then, the organization has had substantial turnover on its staff and board of directors. Still, you’d think they would notice the governor blocking a tax break for hundreds of thousands of Iowans.

Also from the standings bill, Branstad item vetoed a ban on bonus pay for state employees. His communications director says the bonuses are needed to attract and retain “exceptional employees,” but it looks bad for Branstad to insist on bonuses for his favorites while vetoing help for woking families. O.Kay Henderson noted at Radio Iowa that Republican lawmakers criticized Democratic Governors Tom Vilsack and Chet Culver for awarding bonuses to some state employees. Speaking on behalf of AFSCME, Homan slammed Branstad for “running around the state telling the citizens how the state’s going broke because they’re giving the union employees a two percent raise and a one percent raise and now he’s going to allow for bonuses for his department heads.”

If Republican legislative leaders comment on Branstad’s vetoes, I will add their statements to this post. So far, it’s been radio silence from the Iowa House and Senate GOP leadership.

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Weekend open thread: Norway, debt talks and jobs

Yesterday’s heartbreaking attacks in Norway are the big global news story this weekend. This man, Anders Behring Breivik, is suspected of setting off a bomb in downtown Oslo on July 22. The explosion killed seven people and destroyed the prime minister’s office building. The suspect then reportedly dressed in a policeman’s uniform and shot to death at least 85 people at a youth camp run by Norway’s governing Labor Party. Breivik has “confessed to the factual circumstances,” according to his attorney, who said his client planned the crimes long in advance. Police are trying to determine the motive for the attacks. The suspect reportedly had right-wing and anti-Muslim views, but why would anyone attack teenagers at a summer camp?

The big U.S. news story is that House Speaker John Boehner was too stupid to take the deficit reduction deal President Barack Obama offered:

Obama said he had demanded $1.2 trillion in additional revenues over 10 years, in exchange for spending cuts, including cuts to Medicare and Social Security. He said the revenues had been structured in a way that marginal tax rates would not be increased, and no Republicans would be forced to cast a vote that would violate the Taxpayer Protection Pledge, which most Republicans in Congress have signed.

You read that right. While agreeing to cuts in programs that tens of millions of Americans rely on, Obama was ready to guarantee no increases in any tax rates, even at the highest income levels, for the next decade. Not only that, he bent over backwards to give Republicans political cover, so they could accept his offer without facing blowback from Grover Norquist. The same Grover Norquist who now wants Congress to stop playing chicken with the debt ceiling. And Obama was angry Boehner walked out on negotiations, saying he felt “left at the altar”! I don’t see how this so-called Democrat could be handling the budget negotiations any worse. For the first time, I am seriously thinking about writing in a candidate for president in November 2012.

The Iowa Policy Project analyzed the latest state jobs numbers here. Iowa has more than a billion dollars in various state reserves, but Governor Terry Branstad and Iowa House Republicans insisted on an extremely tight budget for fiscal year 2012. The predictable result was a “sharp drop in government jobs” in June, which “fully accounted for the first net drop in Iowa nonfarm jobs in the last six months.” Shrinking government does not help the private economy create more jobs. On the contrary, government job losses contribute to our unemployment problem. Iowa’s unemployment rate is 6 percent, still well below the national average, but that’s no excuse for unwarranted austerity policies.

Here’s one good thing that happened this week: Obama, Defense Secretary Leon Panetta and Admiral Mike Mullen of the Joint Chiefs of Staff all certified “that the U.S. military is prepared to accept openly gay and lesbian service members, and that doing so will not harm military readiness.” As a result, the military’s Don’t Ask, Don’t Tell policy will officially end 60 days from July 22.

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

UPDATE: Iowa native Chuck Manatt passed away this week at age 75. He chaired the Democratic National Committee from 1981 to 1985 and co-chair Bill Clinton’s presidential campaign in 1992. The Los Angeles Times published a good obituary of Manatt. He will be buried this week in Audubon, near the farm where he grew up.

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