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GOVERNOR CANDIDATES: SAME OLD, SAME OLD

October 10, 2006

Iowa's two major party candidates for governor had their first debate. Any voters looking for a new direction for Iowa's tax policy will need to wait at least another four years.

From the Des Moines Register:

Democrat Chet Culver and Republican Jim Nussle disagree on whether Iowans ought to be able to vote on major tax increases, one of several markers in the candidates' limited tax plans.

Neither candidate for Iowa governor has proposed wholesale changes to Iowa's tax law. Both have said they would leave the heavy lifting of restructuring the tax system to the task forces each has proposed be convened after the election.

Punting an issue to a "task force" shows that the candidate has no serious thoughts on tax policy of his own. If you need a panel to give you a policy approach, you haven't done much thinking for yourself.

NUSSLE: MORE LOOPHOLES FOR OLD FOLKS

"If I come out with a tax-cut plan ... half the Legislature will be against it. So I start off with one foot in the hole," Nussle told Des Moines Register editors and reporters.

Nussle has said he would earmark about one-third of surplus revenue for tax relief. It would be up to a commission, chosen by Nussle and the Legislature, to recommend how to apply it, Nussle said.

That's leadership for you...

He has also suggested eliminating taxes on Social Security and pensions in Iowa, saying they prompt Iowa seniors to leave the state.

Of course, the resulting high taxes on those of us still working prompt businesses to stay the heck out of the state.

CULVER: MORE TARGETED LOOPHOLES

Culver supports getting rid of federal deductibility, which would raise the tax burden on some Iowans, while Nussle supports keeping it.

Culver has proposed $40 million in property tax relief through increasing state aid to schools. He would also seek to allow more Iowans to receive the state's earned-income tax credit, estimating $21 million in income tax relief to low- and middle-income families.

He has also proposed tax credits for child care and to promote energy conservation.

Still more social policy through the tax law.

Culver says his tax proposals could be financed through $1 billion he estimates would be available through surplus revenue, a higher tobacco tax and savings achieved by gutting government of waste.

More government, less waste. That's sort of like saving gas by buying a bigger car.

And what about Iowa's highest-in-the-nation corporate tax rate? Or our state tax law that rivals California and New York in baroque complexity? Our high individual tax rates? Our 20-plus targeted tax credits for the well-connected? We'll just have to wait for the "task force" to complete its doomed-to-be-ignored study.

Additional Links:

Radio Iowa Coverage of Culver Tax Plan

Related Tax Update Coverage:

OLDSTERS THRASH WHIPPERSNAPPERS

TAX FOUNDATION: IOWA NINTH WORST STATE FOR BUSINESS TAXES

DES MOINES REGISTER HIGHLIGHTS TAX INCENTIVES

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