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IOWA LEGISLATURE PLOTS LAMENESS

September 12, 2007

Speaking of clueless tax policy in a place where the population has been migrating away for some time, the Iowa legislature is pondering its moves for the next legislative session. It looks like more of the same:

House Speaker Pat Murphy, D-Dubuque, was optimistic that lawmakers would address the state's property tax system, even if only in a limited fashion.

Commercial property tax rates are at the heart of the issue. All sides agree that Iowa's commercial rates are out of line with other states, but resolving the problem without shifting the burden to either farmland taxes or residential rates has been difficult -- lawmakers couldn't agree on a solution last session.

"I think we will do something this session," said Murphy. "We may not do something statewide, but we may get some pilot projects started that would be very beneficial."

Oooh, a pilot project! Expect the "pilots" to be well-connected at the statehouse.

Like in Mexico, the Iowa politicians may have their eye on gas tax increases:

Lawmakers could look in a limited number of places for highway construction -- primarily gasoline taxes, vehicle registration fees or license fees. Murphy added another potential source to the mix: a "severance tax" on renewable fuels.

"Why not do it like Texas?" Murphy asked. "Texas has a tax on fuel when it leaves the state so consumers throughout the United States pay for their education system."

Brilliant. Subsidize ethanol with one hand, tax it with the other. I can hardly wait for the legislature to convene to show off their bold leadership again.

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