House Journal: Page 54: Tuesday, January 14, 1997

"/w"	We have the soundest state budget in the country _ with the
biggest surplus of any state in the nation.
We have already turned the corner in Iowa.  From recovery to
growth; from scraping by to building reserves; this state is
poised for great things to come.
Iowa is a work in progress.  We can, and we must do even better.
 We must make this a better state.  Our growth rates are still
too small; too many areas are not sharing in the economic gains;
too many Iowans don't make enough to adequately support their
families; and too many students are not prepared to compete in a
global economy; too many Iowans fear crime in their communities
and neighborhoods; and Iowans pay too much to the government in
taxes.
I know there are those among you who think that I've been around
too long _ that my first name is Governor.  But I tell you what
_ I'm not tired,  I'm not complacent and I will pour every ounce
of my energy into making this state a haven for growth and
opportunity if you will help me.
We have a plan to do just that.  And the first step is to make
Iowa the most competitive state in America.  
In the past couple of years, we have taken targeted actions
designed to improve our overall competitiveness.  The
elimination of the property tax on machinery and equipment,
improving our farmer-owned cooperative law, and expansion of the
New Jobs and Income Program were all designed to attract
capital-intensive industries and create quality jobs, increasing
income, and bringing population growth to all parts of the state.
I am pleased to report to you that those actions have paid off
in a big way.  In the last year alone, over one billion dollars
in capital investments have been made to Iowa because of these
changes.
What we have learned is that taking bold steps to improve our
competitiveness works.  Being competitive means having a
reputation around the world as a good place to start a business,
to locate a plant, to raise children, to retire.  It means not
penalizing growth, but rewarding it.
But being competitive requires more than bold words _ it demands
bold deeds.
The Governor's Task Force on Economic Competitiveness, which
completed its work in December, found that our personal income
tax rate is the most significant barrier to bringing new
business and good paying jobs to Iowa.
If we are to grow, we must attract more high paying jobs.  Yet
the Task Force found that Iowa's high personal income tax has "a
negative impact on employee recruitment and retention ...,
particularly for technical and middle and upper management
positions."  Those are the jobs we want!  We must change.
There is no question that our personal income tax rates are too
high.  They stymie economic growth and impair the unbounding
determination of Iowans to build a better life for ourselves and
our descendants.
Just look at how we compare with other states. Unfortunately, we
are among the top ten states in personal income tax rates.  And
many of the states which share with us that unenviable position
have lowered their tax rates in the last two years.  New York,
Oregon, Hawaii, Delaware, Connecticut, and even so-called
Taxachusetts have lowered income tax rates.

Iowa General Assembly

Index: House Journal (77th General Assembly: Session 1)

© 1997 Cornell College and League of Women Voters of Iowa

Comments? hjourn@legis.iowa.gov.

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