Two numbers say so much: 140 and $36 million.
Last year, 140 companies paid no income taxes in Iowa but — through the tax code — received $36 million in research checks.
Those two numbers alone tell us two things: We have a problem with transparency, and we have a problem setting priorities.
We know those two numbers because Iowa’s Department of Revenue is required every February to report on the use of the state’s Research Activities Credit.
When we start talking about raising the minimum wage in Iowa the most important point is that we’ve been at $7.25 since Jan. 1, 2008, more than a year before the federal minimum rose. And every year that goes by without an increase affects Iowa families who are struggling to keep their heads above water. Families that count on minimum wage income for a major share of their household budget have seen their costs rise dramatically over the past six years.
Editor’s Note: This post is excerpted from a statement by David Osterberg, founder of the Iowa Policy Project, to the Iowa Utilities Board, February 25, 2014, in docket NOI-2014-0001 Full statement submitted to IUB is here
This week we will get a taste of what transparency could look like for the hundreds of millions of dollars that Iowa spends through the tax code.
We’ll only get a taste, to be sure, as what we’ll see won’t be enough. But, thanks to a law that passed against difficult and powerful lobbying interests in 2009, we do get that taste — a glimpse into who benefits from Iowa’s largest and most generous business tax credit.
Taxes are on the minds of many this week as April 15th approaches. They're also on the minds of many conservative governors -- in states such as Louisiana, Ohio, Oklahoma, and Nebraska -- who have seen their radical tax proposals to further enrich corporations and the wealthy run into major resistance from voters, businesses, and even conservative lawmakers. Louisiana Governor Bobby Jindal, who this week withdrew his regressive plan that would have eliminated the state income tax while raising the sales tax, has seen his standing drop sharply in the polls. In the run up to Tax Day, increasing attention is being focused on how tax breaks for the wealthy and corporations increase burdens on the middle class.
Eight years ago, progressives were recovering from an Election Day that saw a full 11 states ban same-sex marriage at the polls. The environment in early 2013 could not be more different. Coming off of historic successes at the polls in four states in November, momentum behind marriage equality efforts continues to grow in state after state in advance of what is likely to be a landmark Supreme Court decision on the issue this term:
From Missouri to Pennsylvania to D.C., anti-union "right-to-work" laws are still being proposed and debated. Michigan workers continue to fight their law in the courts weeks before it is set to take effect, while workers in nearby states remain prepared for similar legislation to emerge. Meanwhile, an "anti-right-to-work" bill moved forward in Vermont — legislation that would require all workers who receive benefits thanks to a union to pay their fair share.
With a Supreme Court decision and a presidential election now come and gone, conservatives in many states seem to be having second thoughts about their opposition to the Affordable Care Act. Meanwhile, progressive lawmakers in Iowa and Michigan signaled they were set to introduce legislation on Medicaid expansion:
Legislators in Arizona conceded defeat this week in an attempt to gut the state’s minimum wage law. House Majority Leader Steve Court admitted that the law, enacted in a landslide 2006 ballot initiative with 65% of the vote, is still unassailable. Court’s decision wraps up a rough couple of months for legislators and lobbyists intent on rolling back minimum wage laws.