GOP Plans To Use Bush Tax
Cut Windfall
To
Spark Iowa’s Economic Growth
This past Monday, Republicans in
the Iowa Legislature announced the Iowa Growth Initiative, a
five-point plan designed to promote and expand Iowa’s economy.
“Our state stands to receive an
$8-$12 million per year windfall as a result of President Bush’s
tax relief effort,” said Jamie Van Fossen (R-Davenport),
Chairman of the House Ways and Means Committee. “The best use of
those dollars is to jump-start our economy. With some major
employers in our state now laying workers off, we can’t sit idly
by without taking some action to stimulate the economy.”
“The
purpose of President Bush’s tax cut is to give people their
money back,” adds Senator Larry McKibben (R-Marshalltown), who
chairs the Senate Ways and Means Committee. “If we directly gave the $8 million back to Iowans,
residents would receive about $2.60 per Iowan – not even enough
to write and mail the check.
With the Iowa Growth Initiative, we will provide better
jobs for Iowans and we all will get far-wider returns.”
The
Iowa Growth Initiative plan is divided into five parts, each to be
considered separately:
Community Renewal Initiative- Establishes tax incentives for businesses that make
contributions to projects in communities or neighborhoods (i.e.,
physical revitalization, job training, crime prevention, etc.).
This initiative also includes tax credits for businesses
providing child care benefits for their employees.
Small
Business Growth Initiative (sub-chapter S) Allows for 100% of the federal income tax to be
deducted when determining the tax on a shareholder’s
distribution (presently, only 50% is deducted).
New Economy Employment Initiative (stock options)- Provides a deduction for 50%
of capital gains from the sale of capital stock of a corporation,
when acquired by the taxpayer on account of employment with the
corporation or acquired while employed by the corporation.
Interstate Distribution Center Initiative-
Provides that a company is not subject to Iowa income tax if the
only business conducted in the state is the storage of items for
ninety days or less.
Renewable Fuel Initiative-This proposed ethanol-fuel retail incentive would
provide individuals and businesses an income tax credit of 2.5
cents per gallon. This
applies to ethanol-blended fuel, if those individuals or
businesses dispense 60% of the fuel that they vend as designated
fuel. This program
would be voluntary.
“As
our culture continues to evolve to more of a technology
based-society, it makes all the more sense to foster ‘bricks and
mortar’ style businesses
|
here
in Iowa,” said Van Fossen. “Our tax structure in Iowa makes it
difficult to bring
new job opportunities to the state. We are
a high tax state. This Iowa Growth Initiative will help cultivate
the jobs and the types of industries our state needs to flourish in
the 21st century.”
“While this initiative was
developed by Republicans, we invite the Democrats and Governor
Vilsack to join us in supporting the Iowa Growth Initiative,” said
McKibben. “Earlier this year we worked together to repeal the
regressive sales tax on utilities. Now, we have a chance to unleash
the full potential of entrepreneurship, the dreams it fulfills, and
the prosperity it offers to the people of Iowa.”
Yepsen:
Vilsack Is Shifting Money Around,
But
There Is No Cut
Gov. Tom Vilsack unveiled his
proposed budget adjustments Wednesday. All he did was prove he's a
whole lot better at spending money than he is at saving it. The
question now is what should the Republicans controlling the
Legislature do with it?
For openers, let's be clear about
one thing. He has not proposed a "cut" in state spending
at all. In 2002, he is proposing that total state spending still
will grow by $122.5 million. That's a 2.6 percent increase . . . .
For
the complete story, log-on to
http://desmoinesregister.com/news/stories/c5917686/14211463.html
Ways
& Means Update
Bills
Assigned In The Ways & Means Committee This Week:
HSB
245
An act exempting sales to certain tax-exempt nonprofit
symphonic music organizations from the sales and use taxes.
HSB
246
An act providing an Iowa individual income tax check-off for
deposit in the Keep Iowa Beautiful Fund,
and making an appropriation.
Bills
That Passed Out Of The Ways & Means Committee This Week:
HSB
11.1
An act establishing an interstate distribution center
initiative by identifying an activity of a foreign corporation which
does not constitute doing business in or deriving income from
sources within the state and for which a return is not required for
state income tax purposes.
HSB
35.1
An act establishing a small business growth initiative by
adjusting the allocation to Iowa of income earned by an S
corporation for purposes of the state individual income tax.
HF
619
Act relating to the growing and processing of grapes,
creating a state commission, establishing a fund for certain tax
receipts, and providing an appropriation.
|
Week
in Review Archives
