# Taxes



Second presidential debate takeaways: Did Trump stop the bleeding?

The 48 hours before tonight’s town-hall debate were unlike anything seen before in a American politics: 42 Republican members of Congress or governors had announced since Friday that they could not support their party’s presidential nominee. Daniel Nichanian (known on Twitter as Taniel) listed the Donald Trump defectors in narrative form and on this spread sheet.

Hillary Clinton had already been gaining in nationwide and swing state polls since the first debate on September 26, improving her chances of winning the presidency to above 80 percent on FiveThirtyEight.com–before massive news coverage and social media chatter about Trump’s “grab them by the pussy” videotape. FiveThirtyEight’s Nate Silver speculated that “The Bottom Could Fall Out for Trump,” while Nate Cohn of the Upshot wondered whether the new scandal could send the whole Republican ticket “crashing down.”

Shortly before the debate, Trump staged a bizarre media stunt with three women who have accused former President Bill Clinton of sexual misconduct and one who was allegedly raped in 1975 by a man Hillary Rodham represented. Three of those women appeared on his behalf in the post-debate “spin room.”

Republicans are cheering Trump’s performance tonight, and on a superficial level, he clearly handled himself much better than in the first debate. After an excruciating early stretch defending his taped comments as merely “locker room talk” (in contrast to Bill Clinton’s alleged “actions”), Trump repeatedly hammered home his favorite talking points about Hillary Clinton: she’s been a “disaster,” her policies would be a “disaster,” she lies, she has bad judgment like Bernie Sanders said, she’s been there for 30 years but never done anything. He also gave wavering Republican voters plenty of reasons to hang in there with him: bashing Obamacare and the “terrible” Iran nuclear deal, proposing big tax cuts, promising to appoint Supreme Court justices in the mold of Antonin Scalia. Trump also finished the debate on a stronger note, managing a surprisingly gracious answer to the “say something nice about your opponent” question.

So arguably, the Republican nominee did what he needed to do tonight. And yet…

• Trump’s body language was angry and sometimes menacing. Many viewers commented that Trump was looming or hovering behind Clinton in a creepy, threatening, and stalker-like way.

• He denied that his “locker room talk” was tantamount to bragging about sexual assault. I have no doubt more women or previously unknown recordings will come out this week to undercut his denials.

• He vowed to put his political opponent in jail if he becomes president. Bob Schieffer of CBS News lamented, “this is what they do in banana republics.”

• He admitted that he had used a $916 million reported loss on his 1995 tax return to avoid paying personal federal income taxes in subsequent years.

• He made more than a dozen false or misleading statements (see also here).

• He acknowledged that he knows “nothing” about Russia and said he disagrees with his running mate on policy toward Syria. Incidentally, the Indianapolis Star reported on October 9 that unnamed sources close to Indiana Governor Mike Pence say he is “keeping his options open”–whatever that means. Pence is stuck with Trump through November 8, for better or worse.

Any comments about the presidential race are welcome in this thread. In CNN’s instant poll, 57 percent of respondents said Clinton won the debate, 34 percent said Trump did. YouGov’s respondents thought Clinton won the debate by a 47 percent to 42 percent but thought she looked “more Presidential” by a 57 percent to 31 percent.

Coward Chris Hagenow running false personal attack against Jennifer Konfrst

Iowa House Majority Leader Chris Hagenow has plenty of reasons to worry about being re-elected in House district 43. During the last presidential election year, he won his race by fewer than two dozen votes, and the district has fewer registered Republicans now than it did in November 2012. His well-qualified challenger Jennifer Konfrst has been working hard, and Democrats in the district have submitted nearly 1,000 more absentee ballot requests than have Republicans.

Hagenow didn’t run any positive television commercials during the 2012 election cycle and only started airing a misleading ad against his opponent in late October.

In contrast, a few weeks ago the majority leader went up with a bizarro world tv ad portraying himself as an advocate for education. That spot was ludicrous on several levels, as Bleeding Heartland discussed here and Iowa Starting Line chronicled here. Hagenow has been part of a leadership team that for several years in a row ignored Iowa law on setting K-12 education funding. He and his fellow House Republicans have repeatedly refused to appropriate enough money to help school districts keep up with rising costs. Although Hagenow postures as a supporter of preschool in his tv ad, he voted to eliminate the state preschool program in early 2011. Furthermore, because House Republicans insisted on only a small increase in K-12 school funding this year, the West Des Moines school district (where most of Hagenow’s constituents live) cut its 3-year-old preschool program.

But as deceptive as Hagenow’s positive ad is, the hit piece he started running against Konfrst on October 5 is even more mendacious.

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Throwback Thursday: Down memory lane with politicians who don't pay income taxes

By Tom Witosky

Donald Trump’s reported avoidance of paying federal income taxes – possibily for almost two decades – raises a simple, but interesting question for Iowa voters.
Does it matter? And, if it doesn’t matter to voters in 2016, then why did it matter when Gov. Terry Branstad and his supporters made such a big deal of it in his campaigns against Democrat candidate Roxanne Conlin in 1982 and Jack Hatch in 2014?

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ISU's cover story on President Leath's airplane use is falling apart

Iowa State University’s contention that President Steven Leath never violated university policy on using state property for personal gain is looking increasingly implausible. Leath tried last week to end the controversy over his piloting adventures, saying he had done nothing wrong but would not fly the university’s Cirrus SR22 anymore “to allay any future concerns.”

However, Ryan Foley reported today for the Associated Press that some of Leath’s flights on the university’s larger King Air 350 “potentially violate policies that require travel expenses to be reasonable and business-related.”

The new revelations not only call into question Leath’s compliance, but could also raise red flags for the Internal Revenue Service about “excess benefit transactions” by ISU’s Foundation.

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Weekend open thread: Trump meltdown and tax avoidance edition

Who could have predicted that after his poor performance in Monday night’s debate, Donald Trump would spend most of the past week re-litigating his fat-shaming of former Miss Universe Alicia Machado, culminating in an overnight tweet-storm that Hillary Clinton described as “unhinged, even for Trump”?

Trump’s “aggressive bullying” is textbook behavior for a narcissist–so much that many survivors of domestic violence and emotional abuse found his behavior during the first debate triggering their traumatic memories. Even more disturbing: look how easily Trump fell for the “trap” Clinton set during the debate, validating the narrative that he “lacks the temperament and emotional stability to be president.” Foreign adversaries would have a field day manipulating this guy.

No wonder the Arizona Republic, which had never supported a Democrat for president since its creation in 1890, endorsed Clinton this week, saying Trump is “not conservative” and “not qualified.”

Today’s New York Times features tax documents showing Trump declared a $916 million loss in 1995, which “would have been large enough to wipe out more than $50 million a year in taxable income over 18 years.” The Trump campaign did not deny the authenticity of what they called “illegally obtained” documents but said in a statement,

Mr. Trump is a highly-skilled businessman who has a fiduciary responsibility to his business, his family and his employees to pay no more tax than legally required. That being said, Mr. Trump has paid hundreds of millions of dollars in property taxes, sales and excise taxes, real estate taxes, city taxes, state taxes, employee taxes and federal taxes.”

Mr. Trump knows the tax code far better than anyone who has ever run for President and he is the only one that [sic] knows how to fix it.

The New York Times scoop doesn’t point to any illegal tax avoidance by Trump, but David Fahrenthold’s reporting for the Washington Post has uncovered several Trump Foundation practices that appear to violate federal and state law.

Clinton was already gaining ground in some polls before the first debate. As of September 30, she led Trump in all eleven swing-state polls that were in the field after the debate. None were from Iowa, where Trump has led the latest public surveys and is slightly favored, according to various election forecasters. I wonder whether Clinton will get a bounce here as well. I’m disappointed not to see a new Iowa poll by Selzer & Co this weekend. Usually during election years, the Des Moines Register commissions a Selzer poll to run in late September.

Speaking of public opinion, Charles Franklin of PollsandVotes.com gave me permission to post below graphs he created, comparing President Barack Obama’s second-term job approval rating with that of Presidents Ronald Reagan and George W. Bush.

This is an open thread: all topics welcome.

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Seven ways ISU President Leath's airplane excuses don't add up

Iowa State University President Steven Leath tried on Monday to cut off further scrutiny of how he used a university plane. Shorter version of the seven-paragraph statement you can find near the bottom of this post: I did nothing wrong, and I won’t do it again. End of story. Leath has donated $15,000 to the ISU Foundation scholarship fund to cover costs associated with fixing and storing a Cirrus SR22 damaged in a July 2015 “hard landing.”

While ISU spokesperson John McCarroll slow-walks my information requests, refusing to send me even the insurance policy that should take his staff minutes to retrieve, now seems like a good time to explain why Iowans haven’t heard the last about this scandal.

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Donald Trump paid a price for not doing his homework

Donald Trump’s unrehearsed speaking style has been an asset for most of this campaign. People want to watch a guy who could say any off-the-wall thing at any moment.

Perhaps for that reason, or perhaps because he has a short attention span, Trump spent a lot less time preparing for last night’s debate than Hillary Clinton did. His aides didn’t try to hide that fact. His spokesperson mocked Clinton’s intense prep sessions. Trump himself needled his opponent about it during the debate.

Not doing his homework turned out to be a big mistake.

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IA-Gov: Sales tax hike for conservation may become fault line in 2018

Leaders of a campaign to provide a “permanent and constitutionally protected funding source dedicated to clean water, productive agricultural soils and thriving wildlife habitats” in Iowa touted support in the business and agriculture communities this week. You can watch Iowa’s Water and Land Legacy‘s September 12 press conference here or listen to the audio at Radio Iowa. Under a state constitutional amendment Iowa voters adopted in 2010, revenues generated by the next 3/8th of a cent sales tax increase (estimated at more than $180 million per year) would flow into a Natural Resources and Outdoor Recreation Trust Fund. Scroll to the end of this post for a current list of IWLL coalition members and details on the formula for allocating trust fund money.

Without knowing which parties will control the Iowa House and Senate next year, it’s hard to gauge prospects for passing a sales tax increase. Democratic State Senator Matt McCoy commented on Monday, “The best time to move on a piece of legislation is just following an election. That’s when you get your best bipartisan compromises, and I think ultimately, this is something we can find a bipartisan compromise on.”

Who might lead statehouse Republicans toward such a compromise is unclear. The GOP lawmaker most supportive of IWLL has been State Senator David Johnson. But he left the party this summer to protest presidential nominee Donald Trump and told Bleeding Heartland in a recent interview that he plans to remain an independent during the 2017 legislative session.

At least one Republican running for governor in 2018 will support the sales tax increase: Cedar Rapids Mayor Ron Corbett. That stance will put him in conflict with either Governor Terry Branstad or his chosen successor, Lieutenant Governor Kim Reynolds. In addition, support for funding IWLL among major farm lobby groups could create problems for Iowa Secretary of Agriculture Bill Northey, also a likely gubernatorial candidate in 2018.

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Iowa Senate district 32 preview: Brian Schoenjahn vs. Craig Johnson

To win control of the Iowa Senate, where Democrats have held a 26 to 24 majority for the last six years, Republicans will need to beat at least two Democratic incumbents. One of their top targets is Senator Brian Schoenjahn, who is seeking a fourth term in Senate district 32.

Follow me after the jump for a map and details on the political makeup of this northeast Iowa district, along with background on Schoenjahn and his challenger Craig Johnson, the key issues for each candidate, and a look at Johnson’s first television commercial.

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Thoughts on Gary Johnson's Des Moines rally and Iowa prospects

Libertarian presidential candidate and former New Mexico Governor Gary Johnson made his first Iowa campaign stop this year over the holiday weekend. His September 3 rally in Des Moines attracted hundreds of people, making it possibly the largest Libertarian event in Iowa history. You can watch his full speech at C-SPAN or Caffeinated Thoughts.

Johnson will qualify for the ballot in all 50 states and is consistently polling far better than the Green Party’s Jill Stein, the only other minor-party candidate routinely included in public opinion surveys. I continue to hear the Libertarian’s radio ads on various Des Moines-based stations and have seen pro-Johnson television commercials by the Purple PAC on some cable networks.

The four most recent Iowa polls measured Johnson’s support at 8 percent (Emerson College), 12 percent (Quinnipiac), 6 percent (Suffolk), and 12 percent (Marist). Polls have historically overstated support for third-party candidates. Nevertheless, if the competition between Hillary Clinton and Donald Trump remains very close here, even a 2-3 percent showing for Johnson could determine who wins Iowa’s six electoral votes.

Though I wasn’t able to attend Saturday’s rally, listening to Johnson’s stump speech reinforced my view that he is on track to outperform all previous Libertarian presidential candidates in Iowa by a considerable margin.

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A close look at Republican message-testing in key Iowa House races

Republicans are testing potentially damaging messages about Iowa House Democratic candidates, along with statements that might increase support for GOP candidates in battleground legislative districts. After listening to several recordings of these telephone polls and hearing accounts from other respondents, I have three big takeaways:

• Republicans are seeking ways to insulate themselves from voter anger over inadequate education funding and the Branstad administration’s botched Medicaid privatization;
• The time-honored GOP strategy of distorting obscure legislative votes is alive and well;
• The Iowa Democratic Party’s platform plank on legalizing all drugs may be used against candidates across the state.

Read on for much more about these surveys.

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Iowa Senate district 8 preview: Mike Gronstal vs. Dan Dawson

No Iowa Democrat has frustrated Republicans more over the last six years than Senate Majority Leader Mike Gronstal. The 26 to 24 Democratic majority in the state Senate has kept dozens of bills on the conservative wish list from reaching Governor Terry Branstad’s desk. After a net gain of six Iowa Senate seats in the 2010 wave election, many Republicans were confident that gaining control of the upper chamber was only a matter of time. However, Democrats managed to keep that one-seat majority despite a new map of political boundaries that gave Republicans lots of opportunities in 2012. Another GOP landslide in 2014 failed to deliver any net gain for the party in the Iowa Senate.

I’ve long believed Gronstal was well-positioned to win re-election again. Earlier this year, the Iowa Firearms Coalition PAC made the same calculation, leaving Gronstal’s district off its list of targeted Iowa Senate races.

But even if Senate district 8 isn’t among the most promising GOP pickup opportunities, Republican leaders will invest resources in this race, especially since their preferred challenger, Dan Dawson, won a three-way GOP primary. A television commercial introducing Dawson to voters is already in the can.

Follow me after the jump for a closer look at Senate district 8, its recent voting history, the two candidates, and likely themes of the general election.

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IA-03: Someone is testing negative messages about Jim Mowrer

A poll in the field is testing some negative messages about Jim Mowrer, the Democratic challenger to Representative David Young in Iowa’s third Congressional district. Details are after the jump, based on a report from a Bleeding Heartland reader who received the call on Friday. I will update this post as needed if I get the call myself or other respondents share further details.

IA-03 is among the most competitive U.S. House races, with an even partisan voter index and an incumbent serving his first term in a district President Barack Obama carried in 2012. Early last year, the National Republican Congressional Committee put Young in its “Patriot Program” for vulnerable House members. The Democratic Congressional Campaign Committee added Mowrer to its “Red to Blue” program shortly after the June primary election. According to the latest figures from the Iowa Secretary of State’s office, the sixteen counties in IA-03 contain 161,156 active registered Democrats, 172,272 Republicans, and 153,533 no-party voters.

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Weekend open thread: Dangerous territory (updated)

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread: all topics welcome. Here are some links that caught my eye during the past few days; excerpts from several of the articles and columns are after the jump.

Donald Trump’s advocacy for policies that serve Russian interests continue to set off alarm bells for those who are familiar with Russian President Vladimir Putin’s leadership style. In an op-ed for today’s New York Times, former CIA Director Michael Morrell explained why he is publicly endorsing a presidential candidate (Hillary Clinton) for the first time: “Donald J. Trump is not only unqualified for the job, but he may well pose a threat to our national security.”

At this writing, none of Trump’s most prominent Iowa Republican endorsers (Governor Terry Branstad, Senators Chuck Grassley and Joni Ernst, Representatives Rod Blum, David Young, and Steve King) have responded to my e-mails seeking comment on Trump’s Russia connections and other worrying aspects of his candidacy. UPDATE: Clinton’s campaign is now highlighting “Trump’s bizarre relationship with Russia.” Scroll to the end of this post for more.

If weakening the NATO alliance, running down parents of a veteran who died in wartime service, and refusing to release tax returns don’t raise enough red flags, Iowa Republicans could read up on the GOP nominee’s connections with organized crime figures. Timothy L. O’Brien reviewed some evidence for Bloomberg. Two journalists who covered Trump and the casino industry for decades have discussed Trump’s mob ties in greater detail: David Cay Johnston in this article for Politico and Wayne Barrett in an interview with CNN.

Fact-checkers have found that Clinton is much more truthful than Trump, or as Nicholas Kristof put it, “Clinton is about average for a politician in dissembling, while Trump is a world champion who is pathological in his dishonesty.” Former Wall Street Journal reporter Neil Barsky had more to say here about Trump’s lies and poor results in business.

Meanwhile, large segments of the Republican base remain convinced Clinton is a liar or worse. Chants of “Lock her up” are now a staple of Trump rallies in Iowa and elsewhere. Matthew Rezab reported for the Carroll Daily Times Herald on August 2 that at last weekend’s parade to celebrate the 100th anniversary of the fire department in the small town of Arcadia (Carroll County), children were encouraged to throw water balloons at one float, featuring “a man dressed in an orange jumpsuit and Hillary Clinton mask while standing on a platform inside bars, fencing and barbed wire above a ‘Hillary For Prison’ sign tacked onto the side.”

Several national polls, including today’s release by the Washington Post and ABC News, reinforce what Dan Guild noted here a few days ago: Clinton got a larger bounce out of her party’s national convention and is well-positioned going into the final months of the presidential campaign. No public polls from Iowa have come out since the conventions; I’m curious to see whether the state of the race has changed here. Iowa is expected to be among the most closely-contested states this fall. The Washington Post/ABC poll findings on support for Clinton and Trump by education level are stunning. I enclose excerpts from the write-up below.

Final note: Iowa’s annual two-day sales tax holiday is happening this weekend. In theory, the temporary break is supposed to stimulate the economy. The Iowa Policy Project’s experts have been saying for years that the policy is a sham. In her latest column for the Cedar Rapids Gazette, Lynda Waddington compiled more evidence for scrapping this 16-year Iowa tradition.

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Watchdog filed IRS complaint against dark money group run by Chris Rants

An advocacy group run by former Iowa House Speaker Chris Rants “is operating with the primary purpose of influencing political campaigns” in violation of federal tax code, according to the watchdog group Citizens for Responsibility and Ethics in Washington.

Last month CREW filed Internal Revenue Service complaints against ten 501(c)(4) groups, which claim non-profit status as “social welfare” organizations but spent a large share of their funds on political activity during the 2014 election cycle. One of them was the Iowa-based Legacy Foundation Action Fund, for which Rants serves as president and secretary. (The fund did not seek to influence any Iowa elections in 2014.) CREW also filed criminal complaints against six of the ten groups for “falsely representing the amount of money they spent on political activity in 2014”; the Legacy Foundation Action Fund was not among them.

Although Rants’s 501(c)(4) does not disclose its donors, CREW was able to determine that most of its 2014 funding came from American Encore, a “secretive” 501(c)(4) group “formerly known as the Center to Protect Patient Rights.” American Encore has been described as “the linchpin” of the Koch brothers dark money network. The Legacy Foundation Action Fund reported $980,000 in “contributions and grants” on its 2014 tax return; $880,000 of that amount came from American Encore.

More details on CREW’s IRS complaint are below. Rants responded via e-mail, “I am confident that Legation Foundation Action Fund is in compliance with the IRS rules. Legal counsel is reviewing the tax returns and we will file any amendment necessary to ensure the tax returns accurately reflected the organizations actives.”

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Will 2016 be a record-setting year for Libertarians in Iowa?

The two most recent national polls of the presidential race showed unusually high levels of support for Libertarian candidate Gary Johnson. In the NBC/Wall Street Journal survey conducted between June 19 and 23, presumptive Democratic nominee Hillary Clinton was backed by 39 percent of respondents, to 38 percent for presumptive Republican nominee Donald Trump, 10 percent for Johnson and 6 percent for Green Party candidate Jill Stein. An ABC/Washington Post poll in the field between June 20 and 23 found 47 percent of respondents for Clinton, 37 percent for Trump, 7 percent for Johnson, and 3 percent for Stein.

Even taking into account the reality that support for third-party candidates “usually diminishes over the course of the [U.S. presidential] campaign,” and third-party candidates have often received less than half as much support on election day as they did in nationwide surveys from June, Johnson has potential to shatter previous records for Libertarians. A former Republican governor of New Mexico, Johnson received 1,275,821 popular votes as the Libertarian presidential nominee in 2012, just under 1 percent of the nationwide vote. The best showing for a Libertarian ticket in terms of vote share was 1.06 percent (921,128 votes) in 1980 for Ed Clark and his running mate David Koch, better known as one half of the Koch brothers.

I haven’t seen any Iowa polls yet that gave respondents the option of choosing Stein or Johnson as alternatives to Clinton and Trump, but now seems like a good time to examine Libertarian presidential performance in Iowa over the last four decades and Johnson’s chances to improve on his 2012 results.

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More hidden costs of Iowa's generous business tax breaks

The excellent lead editorial in today’s Des Moines Register reminded me of a topic I didn’t manage to cover during the run-up to last week’s primary: the coming belt-tightening in Iowa’s judicial branch, which will affect thousands of Iowans who use the court system.

As with the under-funding of K-12 schools and higher education, the “crisis” in the judiciary is happening because state legislators and Governor Terry Branstad keep approving and extending unaffordable business tax breaks.

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Prairie Meadows IRS problem: Business decisions could end tax exemption

Tom Witosky retired from the Des Moines Register in 2012 after 33 years of award-winning reporting on politics, sports and business. He is the co-author of Equal Before the Law: How Iowa Led Americans to Marriage Equality published by University of Iowa Press. -promoted by desmoinesdem

If it waddles like a duck and quacks like a duck, it’s a duck — even if it looks like a horse and a slot machine.

That adage appears to be the bottom line for U.S. Internal Revenue Service officials, who, after close to 20 years of allowing Prairie Meadows Racetrack and Casino to operate as a non-profit under U.S. Chapter 501(c)(4), now want a share of the $2.2 billion largesse the so-called “racino” generates annually.

Here is a piece of advice about the ongoing controversy: Nothing is going to change for several years unless there is a settlement that won’t change much of anything.

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Weekend open thread: Good tsar, bad advisers edition

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

A bunch of Iowa primary election previews are in the works to post between now and Tuesday. Still trying to decide on my last few guesses for the latest Bleeding Heartland election prediction contest.

Meanwhile, the Iowa Board of Regents will meet this week to discuss, among other things, how to handle the upcoming search for a University of Northern Iowa president and whether to approve a staff recommendation on raising tuition for the coming academic year.

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The Jury Is In: Impact of Iowa Business Property Tax Cuts

Thanks to Jon Muller for a close look at the effects of a law that is a major reason Iowa lacked the revenue to fund K-12 schools and higher education adequately this year. -promoted by desmoinesdem

Senate File 295, the keystone tax bill passed into Iowa law in 2013, is now in full swing. It left a big hole in the State’s General Fund. It delivered handsomely on its promise to cut taxes for commercial property owners, at least in the short run. It provided modest help to the working poor. For its $500 million (plus) price tag, it has accomplished little else.

One positive aspect from the bill, at least from the perspective of most readers on this blog, was an increase in the Earned Income Tax Credit, which returns approximately $30 million to low-income working Iowans. Whether that benefit was worth the hundreds of millions given away to Iowa commercial property owners is a question left to the political analysts.

The remainder of this piece will focus on the property tax components of the bill. For reasons economic, these provisions are not likely to fulfill their stated purpose of spurring development or reducing rents for small businesses and renters. Those issues will be the subject of a different blog post. This post addresses a variety of tax burden shifts, some intended, some not. Virtually all of the benefit has gone directly to improve the wealth of commercial property owners, and shifted the property tax burden to homeowners in the short-medium run. In a strange twist, for those who desired that impact, even that may possibly fail the test of time.

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3rd Congressional District Forum sponsored by Ankeny Dems

Thanks to Stephen Nein for this first-person account. Many central Iowa Democrats I talk to are still undecided on this primary race. -promoted by desmoinesdem

(I just want to say that I apparently do journalism like every thing else – I’m an unrepentant slowpoke. -SN)

Unlike the Presidential campaign, I’ve been undecided on my candidate for the House and Senate election. In the House race: I’ve admired Jim Mowrer for his run against Steve King (& and I grew up in a house across the street from his current home in Waveland); Desmund Adams has a remarkable narrative and palatable thirst for the job; and Mike Sherzan is no slouch in his progressive business-based values.

Thankfully, the Ankeny Area Democrats helped by holding a candidate forum this week. If you missed it, it’s cool – there’s an even BIGGER forum next Tuesday for the Democratic candidates for both seats.

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Want to help under-funded schools? Invest in your downtown

“Footprint” of Jordan Creek Town Center development in West Des Moines, overlaid on the “East Village” neighborhood of downtown Des Moines, courtesy of Jim Thompson

Four of the oldest buildings in downtown Waterloo “have been renovated with their historic features revived,” John Molseed reported for the Waterloo-Cedar Falls Courier on May 13. A block that had been vacant since 2007 will now hold “four commercial spaces and six loft-style apartments.” The city of Waterloo and the state historic tax credit program helped secure private investment for the project.

Renovating older buildings is much better for the environment than razing them. The economic benefits of historic preservation are not always easy to measure, but converting vacant buildings to commercial or residential use generates revenue.

Downtown property is the most valuable per acre, according to data compiled by Jim Thompson, a business specialist for the Iowa Economic Development Authority’s Main Street Program. For that reason, Thompson advises anyone who will listen, “If you want to help your school districts, invest in your downtown buildings.”

His message should resonate with local officials after yet another state legislative session produced a disappointing budget for K-12 schools. With Thompson’s permission, I enclose below some materials he has created to show the impact of repurposing downtown buildings.

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IA-03: Jim Mowrer introduces himself to Democrats as a fighter

The three candidates seeking to unseat first-term Republican Representative David Young have been working the phones and attending Democratic events all over Iowa’s third Congressional district as Iowa’s June 7 primary approaches.

The campaigns are also finding other ways to convey their messages to voters they can’t reach in person. A post in progress will cover an eight-page newspaper-style handout featuring Desmund Adams. Bleeding Heartland discussed Mike Sherzan’s first direct mail and television commercials here.

Jim Mowrer has introduced himself to Democrats with a tv ad and at least six mailings, starting shortly before early voting began on April 28. A recurring theme in Mowrer’s outreach is the Iraq War veteran’s commitment to fight for Democratic values and priorities, especially Social Security. Like U.S. Representative Dave Loebsack, Iowa’s only Democrat left in Congress, Mowrer grew up with relatives who depended on Social Security benefits after a family tragedy.

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Iowa's Democracy Spring

Bleeding Heartland welcomes guest posts advocating for candidates in competitive Democratic primaries. Please read these guidelines before writing. -promoted by desmoinesdem

In the 2016 Iowa Democratic Senate primary, if we are not careful, we are going to get corporate ag anti-environment, anti-labor Patty Judge jammed down our throats. The two progressives in the race are Tom Fiegen and Rob Hogg. The purpose of this letter is to compare the two on the issues that are important to us as progressives:clean water, CAFOs, blocking the Prestage slaughter plant in Mason City, the Bakken pipeline, $15 minimum wage, family farming, economic fairness and immigrant rights.

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Now he tells us: Hatch bashes property tax law he voted for, campaigned on

Jack Hatch isn’t happy with the work of his former colleagues in the Iowa Senate. Writing in the Sunday Des Moines Register, he declared the 2016 legislative session to be a “disaster for Democrats,” who made no progress on improving water quality, protecting public employees, raising the minimum wage, or funding education adequately. In Hatch’s view, Governor Terry Branstad has “bullied” Senate Democrats “into siding with him in serving only the top 10 percent.” In particular, he cited the “historic levels of tax relief for corporations” senators approved three years ago, part of a trend toward providing generous tax breaks for business while Iowa schools lack essential resources.

I couldn’t agree more that the commercial property tax cut lawmakers approved at the end of the 2013 legislative session was too expensive and mostly oriented toward businesses that didn’t need help, with foreseeable consequences for public services. Undoubtedly, that legislation and other corporate tax breaks are largely responsible for budget constraints that drove Democrats toward lousy deals on funding for K-12 school districts as well as higher education.

Just one question: why didn’t Hatch listen to the experts who warned at the time that the tax cut amounted to “Christmas for Walmart and McDonald’s”?

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IA-03: Sherzan highlights values through "different way of doing business"

Many candidates point to successful careers to communicate their leadership or management skills. Mike Sherzan, one of three Democrats seeking the nomination in Iowa’s third Congressional district, is highlighting his experience as founder and chief executive of a financial services firm in order to show that he values hard work and putting people first.

Last Friday, Sherzan became the first candidate in IA-03 to start running television commercials. I enclose below his introductory spot and latest direct mail, which build on his earlier promise to be “a voice for hardworking families.”

UPDATE: Have added the second tv ad for Sherzan, which launched on April 26 and hits similar themes, with a focus on treating women fairly in the workplace.

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Weekend open thread: "The resources we have" edition

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread: all topics welcome. The Des Moines Register ran an extraordinary lead editorial on Saturday about a Des Moines police officer’s “pattern of misconduct” and “poor judgment.” Click through to read the most strongly-worded warning about a law enforcement official I’ve seen in an Iowa newspaper.

An emerging compromise on higher education funding was one of the biggest state-level news stories of the week. The Iowa legislature’s joint Education Appropriations Subcommittee, co-chaired by Democratic State Senator Brian Schoenjahn and Republican State Representative Cecil Dolecheck, agreed on April 13 that the fiscal year 2017 budget for higher education will include an additional $6.3 million for public universities: $2.8 million for the University of Northern Iowa, $2.2 million for Iowa State University, and $1.3 million for the University of Iowa. Iowa Public Radio’s Joyce Russell noted that the increases work out to a little less than 3 percent more state funding for UNI, 1.2 percent for ISU, and less than 1 percent for UI.

The Iowa Board of Regents had requested an extra $20 million in state funding for the coming fiscal year: $4.5 million for UI, $8.2 million for ISU, and $7.65 million for UNI. Governor Terry Branstad’s draft budget had included a combined $8 million in additional state funding for the public universities. Last month, Board of Regents President Bruce Rastetter said at least $8 million would be needed to avoid raising tuition. In a statement released April 14, Rastetter said the board would “immediately start discussions regarding tuition increases at our universities for Fall 2016.”

More background and details on the higher education funding compromise are after the jump, but I want to highlight a couple of misconceptions. Russell quoted Dolecheck as saying “we did the best we can with the resources that we have,” and quoted Schoenjahn as saying lawmakers tried to stretch “the precious resources we had” but couldn’t do more without raising taxes.

No. Just last month, the Iowa House and Senate approved a tax bill that will reduce fiscal year 2017 revenues by nearly $120 million: $97.6 million by harmonizing Iowa tax code with federal statutes, and around $21 million by reducing state sales taxes for manufacturing companies. Another $280 million was taken off the table long before this year’s budget negotiations began, when most lawmakers in both chambers approved an expensive commercial property tax cut in 2013. Leaders of both parties bragged about that tax cut at the time but did not acknowledge how the windfall for commercial property owners would affect the state’s ability to pay for other priorities down the road.

Speaking on behalf of the union that represents UNI faculty, Professor Joe Gorton said this week, “It seems clear to me that the regent universities are being sacrificed on the altar of corporate welfare.” An Iowa Fiscal Partnership analysis from January shows Gorton was closer to the truth than were Schoenjahn or Dolecheck. Business tax credits are expected to cost the state around $272 million during fiscal year 2017.

Writing at Blog for Iowa this weekend, Dave Bradley argued, “Had Branstad’s administration not given tax cuts to businesses without consulting the legislature we would probably [be] OK. […] while the special interests that the Republicans have given breaks to are no longer paying what they once did, Iowa’s parents will see higher tuition fees on their kids university bills.” Fact-check: mostly false. Over many years, the legislature approved and failed to revise Iowa’s generous business tax breaks. Most Democrats in both chamber joined their GOP colleagues to pass the costly property tax cut three years ago. Just six state senators and thirteen representatives voted no; I’ve listed them after the jump. The Branstad administration did try to enact the manufacturing sales tax break without legislative approval last year, and was on track to succeed. However, the tax bill lawmakers negotiated and approved last month included a scaled-back sales tax break, superseding the Department of Revenue’s proposed administrative rule.

Speaking of money for state universities not living up to expectations, Ryan Foley of the Associated Press revealed on April 15 that Rastetter has paid only $1.5 million toward his 2008 pledge of $5 million to the University of Iowa’s football program. Before 2015, Rastetter had donated just $500,000 toward that pledge, raising “questions about whether the delay was part of the pressure he put on former university President Sally Mason.” Excerpts from Foley’s article are at the end of this post.

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IA-Sen: Judge playing down, Hogg playing up differences on water quality

Photo of Iowa stream courtesy of InIowaWater.org, a project of the Environmental Law & Policy Center

By entering the U.S. Senate race, former Lieutenant Governor Patty Judge ensured that environmental issues would become salient for many Iowa Democrats trying to choose among the four candidates running against Senator Chuck Grassley.

During the past two weeks, Judge has sought to minimize the daylight between herself and State Senator Rob Hogg on the need to address water pollution. But Hogg, widely considered Judge’s leading rival for the nomination, has made environmental concerns a big part of his pitch to Democrats.

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Promises Made, Never Kept for Natural Resources

A response to the Iowa House Republican plan to pay for water quality programs, which Governor Terry Branstad has endorsed. -promoted by desmoinesdem

I’m a long-time reader of Bleeding Heartland and a very infrequent source of posts/commentary. I am also heavily involved with Citizens for a Healthy Iowa and was the Campaign Manager for the Iowa’s Water & Land Legacy constitutional amendment campaign in 2010. Issues like water quality, wildlife habitat and protecting our public lands are near and dear to me …

Through that work I came to know Mark Ackelson of Iowa Natural Heritage Foundation and Bob Riley, a local businessman and conservation advocate. They recently penned a piece for Citizens for a Healthy Iowa that I wanted to share with Bleeding Heartland readers.

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Libertarian candidate for Iowa House District 38

Note from desmoinesdem: The major-party candidates in House district 38 are four-term Republican incumbent Kevin Koester and Democrat Heather Matson. Brett Nelson is challenging Koester in the GOP primary. Click here to view a district map. The latest figures from the Iowa Secretary of State’s office show that House district 38 contains 6,555 active registered Democrats, 7,083 Republicans, and 6.282 no-party voters.

Jeff Meyers was nominated for State House District 38 at the Libertarian Party convention held on Saturday, March 19th. Jeff is from Ankeny and works as a fraud analyst. He is running for Iowa House to help lead the charge in the legalization of medical marijuana and cannabis/hemp production in Iowa. He wants to help Iowa students by returning to common sense education, not common core, higher budget for schools and more support for teachers. He supports the repeal of the lifetime ban on voting for past criminals. He wants to be accountable to the taxpayers by fighting for a smaller, more efficient state government and the return of the liberties that our country was founded on.

Democrats settle for quarter of a loaf on tax deal, crumbs on school funding

The more things change, the more they stay the same.

Leaders in the Democratic-controlled Iowa Senate agreed early in the 2015 legislative session to pass two major tax bills backed by top Iowa House Republicans. The moves left Democrats no leverage to obtain concessions from Republicans on state spending for vital services, especially education. After months of negotiations, the final deal struck after Memorial Day gave House Republicans what they wanted on global budget targets and acceded to their demand for “allowable growth” of only 1.25 percent for K-12 education budgets.

As a gesture toward compromise, Republicans agreed last year to a supplemental spending bill, which included one-time funding for K-12 school districts, community colleges, and state universities. But once lawmakers had adjourned, Governor Terry Branstad item-vetoed some $56 million for education from that bill. The governor pleaded fiscal responsibility in his veto message, though such concerns hadn’t stopped him from signing $99 million in tax cuts into law months earlier.

I had high hopes for a better outcome this year when I saw Senate Democrats balk at passing a $97.6 million “tax coupling” bill much like the one that sailed through the upper chamber in 2015.

But during the past two weeks, Democrats approved harmonizing the state and federal tax codes as part of compromise legislation that was not linked to education spending. Then they agreed to school funding levels very close to the House Republicans’ initial offer for fiscal year 2017, which begins on July 1 and runs through next June. Lower projected state revenues forced Democrats to accept insufficient allowable growth for K-12 school budgets, lawmakers told disappointed students and educators. As usual, budget constraints never seem to be a reason for the Iowa legislature to say no to constituencies seeking expensive tax breaks.

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This is why they raise taxes in non-election years

Early in last year’s legislative session, state lawmakers voted to raise Iowa’s gasoline tax for the first time in more than two decades. Unlike many controversial policy questions, this issue did not split the public or elected officials along party lines. The Des Moines Register’s February 2015 statewide poll showed Iowans generally and subgroups of Democrats, Republicans, and independents were all divided on whether to raise the tax by 10 cents a gallon to pay for road and bridge repairs. In the Iowa House and Senate, lawmakers from both parties voted for and against the tax increase. Senate Majority Leader Mike Gronstal had reportedly refused to bring the bill to the floor without a guarantee that at least half of the 24 GOP senators would vote for it.

The immediate backlash against the gas tax hike came mostly from Republican circles. Former Iowa GOP Chair A.J. Spiker and former state party co-chair David Fischer were among the vocal critics. Conservative WHO Radio host Simon Conway urged Republicans to “send a message” by changing their party registration.

Governor Terry Branstad signed the gas tax hike into law within 24 hours of its passage. The following day, conservative activist Eric Durbin announced on Conway’s show that he would challenge nine-term incumbent State Representative Clel Baudler in the 2016 GOP primary to represent Iowa House district 20.

Yet a year later, there is little sign of political fallout for the 28 state senators and 53 state representatives who voted to make Iowans pay a little more at the pump.

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IA-03: Poll is testing negative messages about Jim Mowrer and Mike Sherzan (updated)

UPDATE: I got this call myself on March 22 and recorded the questions, so was able to fill in gaps below.

A poll is in the field testing negative messages about two of the three Democratic candidates running in Iowa’s third Congressional district. I haven’t received the call, but I discussed it with two respondents, one of whom shared notes on the poll with me. I encourage all activists to take notes on political surveys, whether they are legitimate message-testing polls, like this one, or push-polls. Campaigns use message-testing to collect and analyze data about candidates’ strengths and weaknesses and which talking points resonate with voters. In contrast, as Kathy Frankovic explained here a push-poll is “political telemarketing masquerading as a poll,” designed solely to disseminate negative information.

Three Democrats are seeking the nomination in IA-03: Desmund Adams, Jim Mowrer, and Mike Sherzan. The respondents who told me about this poll heard negative messages about Mowrer and Sherzan only. Both had said on the first ballot test that they were supporting Mowrer. If any Bleeding Heartland readers receive the same call, please say you plan to vote for Adams and then let me know whether the caller presents a list of unflattering statements about him. (UPDATE: Another respondent reports that he indicated strong support for Adams but was not given negative information about him.)

It’s possible that whoever paid for this call–my hunch is Sherzan’s campaign–is more concerned about Mowrer than Adams, because Mowrer has a lot of support from Democratic insiders and more funds to raise his name recognition across the district before June 7.

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IA-04: GOP State Senator Rick Bertrand will challenge Steve King

Bret Hayworth had the scoop this morning for the Sioux City Journal, and State Senator Rick Bertrand told the rest of the world at a press conference this afternoon:

“I’m Rick Bertrand, I’m real, and I’m running!” Bertrand said in announcing his candidacy [in the fourth Congressional district]. He added, “I am a viable and credible candidate, and will pose the greatest challenge Mr. King has faced in 14 years.”

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South Carolina Democratic primary discussion thread

Polls just closed in South Carolina, where Hillary Clinton is favored to defeat Bernie Sanders easily, possibly by as large a margin as Sanders’ big win in New Hampshire. Any comments about the Democratic race for the presidency are welcome in this thread. Here are a few links to get the conversation started.

African-American voters are critically important for Clinton and will make a large share of the electorate not only in South Carolina but also in at least six of the states that vote on “Super Tuesday” (Alabama, Georgia, Tennessee, Texas and Virginia). This chart shows data from the 2008 primaries on the non-white percentages of electorates in the states that will vote on March 1.

Toni Monkovic argued recently, “We’re living in an era when blacks have essentially played kingmaker in the most important elections in the nation.” Sanders did extremely well among white working-class voters in the first three states, but “he does not really have a path to victory unless he can significantly narrow or even erase Mrs. Clinton’s edge among nonwhite voters,” Nate Cohn argued earlier this month. The prevalence of moderate Democratic voters in several of the Super Tuesday states should also work to Clinton’s advantage.

Tim Murphy wrote an interesting piece for Mother Jones on “Clinton’s Most Valuable Allies in South Carolina: the Moms of Black Lives Matter.”

Terrell Jermaine Staff profiled Marcus Ferrell in Fusion. Ferrell’s job with the Sanders campaign is “convincing black folks to ‘feel the Bern.’”

David Sirota took a close look at what economists say about whether Sanders’ plans on single-payer health care and free education at public universities “add up.”

Nate Silver of FiveThirtyEight.com laid out which states Sanders needs to win on Super Tuesday and beyond to win the Democratic nomination.

Excerpts from all of those articles are after the jump.

For comic relief, I recommend Steve Deace’s latest column for the Conservative Review on how 2016 is shaping up to be “the devil’s favorite presidential election.” He takes some ridiculous shots at Clinton and Sanders but the real venom comes out when he writes about Donald Trump. Deace is furious the strong anti-establishment sentiment in the Republican electorate is working mostly in Trump’s favor, rather than pushing Ted Cruz ahead.

UPDATE: Clinton is on track to outperform her lead in South Carolina polling. She gave her victory speech less than an hour after polls closed, and sounded like she was running against Donald Trump, not Sanders. I’ve added excerpts from her speech below. She recognized by name all of the “Black Lives Matter” moms, as well as their children who were killed.

SECOND UPDATE: Wow. A crushing victory for Clinton by nearly a 3 to 1 margin. I don’t remember seeing anyone predict she would even win 2 to 1. Harry Enten speculates that South Carolina “may be the beginning of the end for Sanders.” Added excerpts at the end of this post.

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Nice Bunch of Jobs You Have There, Iowa. Be a Shame if Something Happened to Them

Dave Swenson

Is it extortion when one party pays up even though it was never threatened?

Recently, the state of Iowa awarded $17 million in state assistance to Dow-DuPont for pledging to keep its Pioneer-related research and development activities in Johnston. In a Des Moines Register interview of Tina Hoffman, a spokesperson for the Iowa Economic Development Authority (IEDA), we were told they were sure “Pioneer wasn’t going to up and close down shop. That was clear from the beginning ….” Still, the state is spinning this to be all about job retention.

Except it wasn’t.

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Carrie Duncan Running For Iowa House district 84

Bleeding Heartland welcomes guest posts on state legislative races. Great to see a candidate stepping up in this district. Democrats failed to field a challenger against Heaton in 2012 or 2014. By the way, some Iowa politics junkies have Heaton on retirement watch. -promoted by desmoinesdem

Carrie Duncan is running for State Representative in House District 84 against eleven-term incumbent Dave Heaton (R-Mount Pleasant), as a Democrat. With the controversy surrounding the potential closure of a mental health facility in Mount Pleasant. Carrie felt the need to run against Representative Heaton, feeling that he was not a strong enough of a voice against the Branstad Administration’s plans to close the facility.

Carrie’s support for organized labor is fierce and deep. She is a proud member of the International Association of Machinists and Aerospace Workers (IAMAW), Chief Steward, Local 1010 She works at the American Ordinance LLC in Middletown. Carrie’s son, Zach also works at American Ordinance LLC. Zach lives with his wife Randee, in Mount Pleasant. Carrie has also worked at Pioneer Corn and Pinnacle Foods. She resides in New London.

Carrie got into this race as a voice for the middle class and the poor in the state of Iowa. She believes that the state government is simply giving too much away, using tax breaks to procure agreements with big corporations while not doing enough to educate our children. The unemployment rate is too high in District 84; this means that we need leaders in Des Moines that are regularly communicating with small businesses instead of constantly trying to lure extremely large companies, many times hiring out of state labor to fill the positions.

Carrie has worked in the New London School District as well; she has gained knowledge about the issues that our educators face daily. She has worked in some different industries, always fighting for fair wages and equal treatment for all in the workplace. She currently serves as the Vice President of the North Lee County Labor Council.

She is also hoping to see an end to the Governor’s plan to privatize Medicaid, and wants to see a more transparent process when large economic development agreements come to the area.

District 84 encompasses portions of Northern Lee County, Henry County, and Jefferson/Washington townships. [note from desmoinesdem: A map is after the jump, along with the latest voter registration numbers.]

Carrie is originally from Chillicothe, Illinois and she grew up on a family farm. She has a lifetime appreciation for our state’s local ag producers. Carrie is involved in a number of terrific charitable organizations in Southeast Iowa, as well.

For more information go here:

http://kilj.com/2016/01/news/carrie-duncan-announces-run-for-state-representative-in-washington-henry-jefferson-and-lee-counties/

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How to write an Iowa caucus party platform resolution

Many Iowans leave their precinct caucuses after the presidential selection process, but the caucuses also provide an opportunity for politically-engaged people to influence their party’s platform. If you bring a resolution to your precinct caucus, you have a good chance of getting it approved and sent to the county platform committee, which decides what will come to a vote at the county convention.

Little-known fact for those who want to exercise this option: platform resolutions should be written in a different format from other political resolutions you may have read. Follow me after the jump for details and examples of resolutions you can bring to your caucus on Monday night.

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Clinton making tactical error as Iowa polls show Sanders in striking distance

Hillary Clinton’s campaign has wisely avoided attacking Bernie Sanders these past nine months. But the front-runner’s tactics are changing as multiple Iowa polls show Sanders within striking distance or a little ahead in Iowa only a few weeks before the February 1 caucuses. Clinton would do better making the case that she is a stronger and more battle-tested general election candidate. Attacking Sanders on gun control and especially on health care reform could backfire with Democrats who are undecided or not firmly committed.

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Criminal justice reform is major theme of Branstad's Condition of the State address

Governor Terry Branstad delivered his annual Condition of the State address to members of the Iowa House and Senate and the Iowa Supreme Court justices yesterday. If you missed the speech, the full prepared text is here. Iowa Public Television posted the video and transcript here. The early part of the 30-minute address included one false or misleading assertion after another.

· “Sound budgeting practices and fiscal discipline now have us ranked as the 3rd best managed state in the nation.” Contrary to the idea that Branstad markedly improved Iowa’s operation, a major investors group also ranked Iowa the third best-managed state in 2010 under Governor Chet Culver, recognizing Iowa’s good fiscal position, high credit ratings from leading agencies, and low debt per capita compared to most other states.

· “The Iowa Economy has created 214,000 new jobs; surpassing our 2010 goal.” Sorry, no. That’s a fake statistic no economist would accept. It’s a shame the governor has instructed Iowa Workforce Development to keep cooking the books on employment.

· “If the state fails to implement managed care, the growth of Medicaid spending will consume virtually all of our revenue growth.” The Branstad administration has not been able to demonstrate that managed care will save the state money. Florida’s Medicaid privatization turned out to be more costly without improving patient care.

I was also disappointed not to hear more specifics about how Branstad envisions spending funds he would like to divert from school infrastructure to water programs. What kind of water quality programs would be prioritized, and who would administer them? Then again, details about this plan may be irrelevant, because Iowa House and Senate leaders don’t sound open to the idea.

For now, I want to focus on a much more promising part of Branstad’s address. To my surprise, the governor devoted a major section–roughly eight minutes of speaking time–to advocating for criminal justice reforms proposed by a working group he appointed in August. The group was charged with developing ideas to increase fairness and reduce racial disparities in Iowa’s criminal justice system. Click here to read the full recommendations released in November. Bleeding Heartland will discuss some of the proposals in more detail in future posts. Advocates for defendants’ rights and racial justice have generally welcomed the proposals.

Although some policies do not go far enough, and other important reforms are missing from the document, I’m encouraged to see the governor apply some political capital toward reducing systemic racism and inequities in the justice system. I enclose below the relevant portion of Branstad’s speech, with some annotations.

UPDATE: I can’t believe I forgot to mention one thing Branstad could do immediately to address a massive racial disparity in Iowa. His executive order making it extremely difficult for felons to regain their voting rights disenfranchises Iowans of all ethnic backgrounds but disproportionately affects racial minorities.

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