Posted on 04/05/2010 12:51:54 PM PDT by iowamark
ANKENY – Republican candidate for governor Terry Branstad is proposing slashing commercial property taxes and cutting Iowa’s corporate income tax in half as a way to create new jobs.
Branstad said business leaders in the state are calling Iowa’s commercial property taxes and state corporate income tax road blocks to job creation. The former governor, who is launching a comeback bid, said his approach to job creation is to improve the state’s tax and business climate to make Iowa more competitive.
“If we’re going to compete globally and nationally, we must compete right here in our Midwest region,” said Branstad, who served governor from 1983 to 1999.
Under his proposal, corporate income taxes would be cut in half, which would mean the top rate of 12 percent would be reduced to 6 percent. Branstad estimates that would amount to over $80 million per year.
“We know this won’t be easy, and it won’t be accomplished overnight, but it must be done if we’re to grow our economy and attract more business, especially small business, and entrepreneurs to our state,” Branstad said.
Branstad called Iowa’s commercial property taxes among the highest in the country and said the state corporate income tax rate of up to 12 percent is the nation’s highest marginal rate.
He is proposing reducing commercial property taxes to less than the Midwest average by taxing new commercial property at a portion of its value. Existing commercial property owners would see taxes phased down over a period of 4-5 years.
Branstad said local governments would see additional revenue from new businesses, and that the state would work with local governments to make up whatever shortfall might occur as taxes are lowered on existing businesses.
He said it is “out of whack” that commercial property in Des Moines faces more in property taxes than comparable commercial property in Manhattan.
To illustrate how property tax cuts can stimulate growth, Branstad cited examples of companies such as IPSCO Steel that chose to locate operations in Iowa when the state began steps to eliminate the property tax on industrial machinery and equipment while he was governor.
http://www.iowapolitics.com/index.iml?Article=191565
“”Branstad Campaign: Unveils job creation initiatives
4/5/2010
Contact: Tim Albrecht (515) 276-2266
Branstad unveils job creation initiatives
Current commercial property tax rates higher than New York City, Chicago, Kansas City and Philadelphia
Iowa’s corporate income tax rate is highest in nation at 12 percent
(URBANDALE) – Speaking to a group of small-business owners and supporters in Ankeny this morning, former Gov. Terry Branstad rolled out job creation strategies designed to lure in new businesses, and to expand the payrolls of existing Iowa companies.
The policy document is found here: http://governorbranstad2010.com/assets/branstad-policy-rollout.pdf
The Midwest map comparison is found here: http://governorbranstad2010.com/assets/branstad-midwest-tax-comparison.pdf
Branstad’s goal is to create 200,000 new private-sector jobs in five years. To do this, Branstad says, we must reduce the tax burden on Iowa companies.
“Iowa’s business tax climate is one of the worst in the nation and is a serious impediment to job creation and economic growth,” Branstad said. “Before Iowa can hope to compete nationally and globally, we must first improve our relative competitiveness amongst our closest neighbors.”
To do this, Branstad has set the following goals as first steps towards creating 200,000 new jobs for Iowans: Reduce commercial property taxes in Iowa to less than the Midwest average, and cut Iowa’s corporate income tax rates in half.
According to a recent study (see attached PDFs), commercial property valued at $500,000 in Des Moines would pay more tax than similar property in New York City, Chicago, Kansas City and Philadelphia.
Iowa’s corporate income tax rate is 12 percent and is the highest marginal rate in the nation.
“Cutting commercial property taxes and corporate income taxes will not be easy, but is necessary in order to be competitive in recruiting news jobs and maintaining existing ones,” said Branstad.
For more information on the Governor Branstad 2010 campaign, please visit http://www.GovernorBranstad2010.com.”";
It’s getting time to decide who to support.
Hasn’t he heard? You RAISE taxes and magically more jobs appear.......................
Doing this would be the most intelligent, useful and prudent thing any governor could do. The legislatures’ ability to hand out goodies to preferred individuals and companies would instantly end and their pursestrings would be drawn properly shut.
Hope it really happens.
New resident of Iowa....any background on his previous record as gub’ner, and also the other guy from GOP Vander Plaats?
I’m always for lower taxes. But why cut taxes only for the guys who write the big checks to Branstad?
Cut taxes to improve growth? I think an artery in my eye just ruptured.
I lived in IA during his prior terms. He was a good Governor, but not a great one.
He’s on the right track this time, though, and he’ll be light years better than Chet ‘I wanna be President’ Culver.
Chet’s sucked up to Obama so bad that when Obama breaks wind, Chet’s socks swell up.
He might be the next “Chainsaw Al”!
thanks for the info. I am learning IA politics.
culver is an idiot.
I personally do not want to support him in the primary, but would (have to) if he wins the primary.
Why have any "capital gains" taxes in the first place. All "capital gains" taxes, property, estate and inheritance taxes should be abolished. A simple low state income tax should be all that's necessary along with sales taxes and various low fees for government services.
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