The following was sent in an e-mail recently by Republican Party of Iowa Chairman Stewart Iverson:
Getting Down to Business
Getting Down to Business
Floor debate in the Iowa House had an interesting turn this week, when House Democrats admitted that without a tax increase on Iowa businesses, they will be unable to balance the state budget this session.
Prompting the comment was an amendment put forth by House Republicans that would have mirrored the federal economic stimulus package by allowing an accelerated write-off for businesses for certain assets they own, called bonus depreciation.
The Democrats defeated this amendment on a partisan vote, 53 to 47, with every single Democrat casting a vote against the bill.
This was a great opportunity to stand up for hometown Iowa businesses, who will be hit with a tax increase of up to $30 million. The reason the Democrats gave for voting down the amendment, as stated above, is that the additional revenue generated through the tax increase was needed to help them balance their budget.
This is a sad statement – when state revenues are coming in at record levels – that Democrats need to raise taxes just to balance the budget.
Recently, the Legislature gave Microsoft a big tax break to land a server farm in central Iowa. Tax incentives are an effective way to lure new businesses to the state. Shouldn’t our hard-working, existing businesses in Iowa be offered some tax relief as well?
The Democrats, with their runaway spending, don’t think so.
The Heritage Foundation had this to say about bonus depreciation:
“The best part of the agreement is tax cuts for businesses. "Bonus depreciation," which allows companies to rapidly deduct qualified investment from their tax liability, makes new investment opportunities more profitable and attractive. This provision would increase business investment, which would create jobs and strengthen the economy.”
Republicans will continue to offer real tax relief to stimulate the economy and help Iowa’s businesses.
Stewart Iverson
Chairman, The Republican Party of Iowa
