Representative Van Fossen

Jamie Van Fossen


The Week In Review 
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January 26, 2007
E-mail: jamie.van.fossen@legis.state.ia.us 

 Session Week 3
Fax: 563-355-9954

UPDATE ON PROPERTY TAX PANEL

On December 5, Governor-Elect Culver announced the formation of another committee to figure out how to relieve the property tax burden on Iowa businesses.

The commission is going to be holding public hearings and is to make recommendations to the Culver

Administration in mid-January.  The first public hearing was held in Des Moines on December 21.

The Commission met January 16, to discuss their recommendations to Governor Culver.  According to a Des Moines Register article that was published January 17, the commission plans to recommend the state increase school aid by at least $25 million and offset property taxes by a similar amount. 

According to the Iowa Department of Revenue Annual Report, in Fiscal Year 2006, Iowa taxpayers paid $3,429,496,729 in property taxes.  Of the more than $3 billion, $1,458,545,290 were property taxes paid to K-12 education. 

Interestingly, the Des Moines Register article also stated:  “Some of the commission's ideas - such as allowing cities to collect fees for fire and police protection provided to hospitals and other owners of tax-exempt property - will be included in a section of the report calling for study by the governor and Legislature.”  (Jonathan Roos, “Commission urges state to pay more in aid to schools”,  January 25, 2007 Des Moines Register)

It appears that Governor Culver’s Commercial Property Tax Commission is suggesting:

1.       Increased state spending

2.       Another tax commission

The group's final report could be ready for release on Friday. Culver is scheduled to make his budget recommendations to the 2007 Legislature on Tuesday.

“FAIR SHARE” IS FORCED UNIONISM

The so-called “Fair Share” legislation is not fair.  It is forced

unionism.

There is nothing fair about forcing individuals to pay dues to a union

or an organization they do not choose to belong.  Most state

employees are not union members.  What will happen to union

coffers if the non-union state employees are forced to pay union dues?  Unions will be able to contribute huge sums of money to candidates who support forced unionism AND they will be able to invest tremendous amounts of cash in efforts to unionize non-union shops. 

Democrats made a political calculation NOT to campaign on their plan to force non-union employees to pay union dues.  Instead they campaigned on politically popular things like raising the minimum wage and increasing spending on education.

The attack on our Right to Work law began back in 2000 when Governor Vilsack ordered the removal of all references to Iowa’s status as a Right to Work state from material used by the Iowa Department of Economic Development to attract business.  After the Legislature approved a bill HF 103 in 2001 to reverse his order, he vetoed the bill.

What are “fair share”, agency fees, or fees for service?

These fees require non-union members to contribute money to the union even though they have chosen not to be a member of the union.  The fees are typically 80 – 100% of the union dues.

Will implementing these fees result in a repeal of Iowa’s Right to Work Law?

Absolutely!  The foundation of the RTW law is that you should not have to support a union if you do not want to.  Any change in the RTW law that compels union support is a REPEAL of RTW.

Supporters of these fees argue that non-union members receive benefits from the unions and, therefore, should be required to contribute to the costs of those benefits. 

Unions asked for the ability to represent all persons, whether or not they were union members.  Seventy years later they are complaining that they represent non-union members, calling them “free-loaders” for receiving services and benefits they never asked for in the first place.  

Of course, at any time, unions could choose to represent only members – but that would mean giving up their monopoly on exclusive representation.  So they continue to choose to represent non-union members.

 

 The latest attempt at misinformation by the unions and the Democrats is putting forth the argument that somehow employers are FORCING unions to include in their contract that they MUST represent the entire bargaining unit.  This is simply false.  Employers do not have the ability to force unions to put anything in their contracts that unions haven't already agreed.

Don’t be fooled:  forcing employees to pay fees to a union for benefits they did not ask for is a repeal of Iowa’s Right to Work Law.

DEMOCRATS ALREADY IGNORING THEIR OWN PLAN FOR PROSPERITY ON THE MINIMUM WAGE

Plan for Prosperity? During the fall elections, Iowa House Democrats released their “Plan for Prosperity” stating their intention to “Raise the minimum wage in Iowa from $5.15 an hour to $7.25 an hour by 2009.”

It is interesting that the House Democrats are ramping up their minimum wage increase in less than one year – not the two years they promised Iowa’s businesses.  A $2.10 per hour increase in the minimum wage over only 11 months will certainly be a shock to employers.

Federal Minimum Wage

On Wednesday, January 10, the U.S. House approved a federal minimum wage increase, The Fair Minimum Wage Act of 2007 (H.R. 2). 

H.R. 2 increases the federal minimum wage in three increments:

-Increases to $5.85 an hour 60 days after the date of enactment of the bill.

-Increases to $6.55 an hour one year after the first increase.

-Increases to $7.25 an hour two years after the first increase.

Iowa House Action on Minimum Wage

House File 1, which was approved by the House on January 23 by a 79-19 vote, increases the minimum wage from $5.15 an hour to $6.20 on April 1 this year.  On January 1, 2008, the state hourly minimum wage jumps another $1.05 to $7.25.

When the Iowa minimum wage spikes to $7.25 next January, it will be one of the highest state minimum wage rates in the U.S. and easily the highest in Iowa’s region. 

During floor debate, House Republicans were committed to keeping Iowa business-friendly as well as increasing the minimum wage in a responsible manner.  House Republicans sponsored and supported two key amendments:

House Amendment H-1002 - Small Business Health Insurance Pooling:

This amendment was based on an agreement reached last week between the Association of Business and Industry and the Federation of Iowa Insurers.  Amendment H-1002 would have allowed legitimate business groups to offer a small group health insurance plans to their small business members.  Under current law, each small business is required to purchase on their own health insurance plan.

House Amendment H-1004 - Minimum Wage Increase by 2009:

This amendment would have increased the minimum wage in three increments:

  • On April 1, 2007 the minimum wage would have increased from $5.15 an hour to $5.85
  • On April 1, 2008, the minimum wage would have increased to $6.55
  • On April 1, 2009, the minimum wage would have increased to $7.25

Failure to pass any of these amendments is why I voted against HF 1.

Ways & Means Update

Bills introduced in committee this week:

HF 39  A bill for an act allocating franchise tax revenues 
to local jurisdictions.  
HF 40  A bill for an act providing an individual income tax credit for 
certain teacher expenses and including a retroactive applicability
 date provision.  
HF 41  A bill for an act relating to the deduction of the capital gain 
from the sale of capital investments made in or by certain
 businesses and including an applicability date provision.  
HF 42  A bill for an act exempting the services furnished for the 
production of master audio, video, film, or digital recordings or
 similar media from the sales and use taxes.
HJR 1  A joint resolution proposing an amendment to the
 Constitution of the State of Iowa to require approval by vote 
of the people before certain tax or fee increases take effect.
 
Bills passed out of committee this week:
No bills passed committee
 

   Week in Review Archives

2007 Session
01-12-07

2006 Session
05-05-06
04-28-06
04-21-06
04-14-06
04-07-06
03-31-06
03-24-06
03-17-06
03-10-06
03-03-06
02-24-06
02-10-06
02-03-06
01-27-06
01-20-06
01-13-06

2005 Session
05-20-05
05-13-05
05-06-05
04-29-05
04-22-05
04-15-05
04-08-05
04-01-05
03-25-05
03-18-05
03-11-05
03-04-05
02-25-05
02-18-05
02-11-05
02-04-05
01-28-05
01-21-05
01-14-05

2004 Session
09-07-04
04-28-04
04-16-04
04-09-04
04-02-04
03-26-04
03-19-04
03-12-04
03-05-04
02-27-04
02-20-04
02-13-04
02-06-04
01-30-04
01-23-04
01-16-04

2003 Session
06-04-03 Special Session
05-30-03 Special Session
05-02-03
04-25-03
04-18-03
04-11-03
04-04-03
03-28-03
03-21-03
03-14-03
03-07-03
02-28-03
02-21-03
02-14-03
02-07-03
01-31-03
01-17-03
01-24-03

2002 Session
05-28-02 Special Session II 
05-10-02 Special Edition
04-22-02 Special Session I
04-12-02
04-05-02
03-29-02
03-22-02
03-15-02

03-08-02

03-01-02
02-22-02
02-15-02
02-08-02

02-01-02
01-25-02
01-18-02

2001 Session
05-04-01
04-27-01
04-20-01
04-13-01
04-06-01

03-30-01

03-23-01
03-16-01
03-09-01
03-02-01
02-23-01
02-16-01
02-09-01
02-02-01
01-26-01
01-19-01

01-12-01

2000 Session
04-28-00
04-21-00
04-14-00
04-07-00
03-31-00
03-24-00
03-17-00
03-10-00
03-03-00
02-25-00