Iowa
Related: About this forumtax compromise "christmas for Walmart" cuts cities
email from Iowa Fiscal Policy:
FOR IMMEDIATE RELEASE THURSDAY, MAY 16, 2013
CONTACT: Mike Owen (319) 338-0773, ipp@Lcom.net
NOTE: Peter Fisher is available for interviews.
IFP: Property-tax package combines EITC boost with challenges to local services
IOWA CITY, Iowa (May 16, 2013) The nonpartisan Iowa Fiscal Partnership today released the following statement from Peter Fisher about the Iowa House-Senate conference committee report on SF295. This is the legislation that wraps property tax changes into a package that includes several other items, including an expansion of the Earned Income Tax Credit (EITC).
It's Christmas for Walmart and McDonald's, which will happily receive property-tax breaks that they don't need, while their low-wage employees receive a better Earned Income Tax Credit.
This Christmas tree will grow bigger with each passing year, leaving less room in local budgets to respond to needs. The EITC expansion is important to working families including 37 percent of all Iowa kids but in the balance of who benefits from this package, it is a very small ornament.
If there is any question as to who benefits, Iowans should note that the EITC boost will be $35 million when fully phased in, compared to about 10 times that for property owners.
As we noted last month, the only justification for dealing with commercial property taxes was a political one. It has never been based on either an economic or competitive need to cut commercial property taxes in Iowa. So we have a politically derived package that will meet the demonstrated need to improve the EITC but leaves open new challenges to the support of critical public services in our state.
Peter Fisher is research director of the Iowa Policy Project (IPP) and recently co-authored a report with IPP research associate Heather Gibney about the competing property-tax proposals being considered by lawmakers.
The Iowa Fiscal Partnership is a joint public policy analysis initiative of two nonpartisan, nonprofit Iowa-based organizations, IPP in Iowa City and the Child & Family Policy Center in Des Moines. Reports are at www.iowafiscal.org.
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I don't think this fully clear, but this will slowly drain local property taxes, thus making it hard for cities to provide services.
Frustratedlady
(16,254 posts)rurallib
(62,406 posts)looks like Dems may get sucked in by the higher EITC
IADEMO2004
(5,554 posts)Counties need one of those "Tea Party" sovereignty resolutions like the Iowa GOP supports for the state.
4dsc
(5,787 posts)I am one of those who is very upset with what happened in the state house with this legislation. Residential property owners were not represented at the table and got screwed. What were leaders of the Democratic Party thinking?
I would like to congratulate those party representatives that voted against this bill.
rurallib
(62,406 posts)this one in particular - consequences delayed for several years and
as I understand it the Medicaid expansion will get some money from the counties and
Branstad has authority to stop an abortion using state funds? just heard about it Friday