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Because NASCAR is more important than your business

May 29, 2009

Wouldn't it be nice if the state forced your customers pay extra for your product, but let you keep the money? Wouldn't it be even better if they forced your competitors to also charge extra, but kept the money?

That's the sweet deal Iowa has given the Iowa Speedway in Newton. What's more, the benefit can now go primarily to out-of-state investors:

To attract initial investments, the state offered to give back the first 10 years worth of sales taxes as long as the track remained 60% Iowa-owned. The legislation signed by the governor reduces that to 25%. The sales tax break is capped at $12.5 million.

The Knoxville racetrack has to get by without that sweet deal, as does every other business competing for Iowans' leisure spending. It's good to have a corporate welfare enabler like State Senator Bill Dotzler on your side:

Dotzler, who holds season tickets at the Iowa Speedway, says without more outside investment the facility won't grow. "They've had some great races there and they've got great, nationally-known people who designed it, built it and are managing it," Dotzler said.

Mr. Dotzler seems to support every wacky idea that comes along, from the Earthpork jungle dome to taxpayer subsidies for struggling companies like Microsoft to Iowa's 50% subsidy for Hollywood.