House Journal: Page 55: Tuesday, January 14, 1997

A Cato Institute study found that between 1990 and 1995, those
states that cut taxes experienced the most in growth. They had
employment growth of over 10 percent; population growth of over
7 percent; and income growth of over 33 percent.  States that
cut taxes performed much better than those that did not.
Although Iowa's economy is growing, I know _ and you know _ that
we can do even better.  
The time is right.  We can cut taxes because we are in a
position of financial strength.  We need to cut taxes to make
our state more competitive.  We must cut taxes to unleash the
ingenuity of Iowans to carry this state to a future of
unparalleled growth and progress.
And so today, I  recommend we reduce personal income tax rates
across-the-board by 15 percent over the next two years.  This
will keep millions of hard-earned dollars in the pockets of
hard-working Iowans.
The plan I am putting forth will unquestionably improve our
competitiveness.  It is fair and will benefit all Iowans by
reducing their taxes while maintaining the current progressivity
of our tax system.  And most of all, it is realistic and
sustainable for the long term.  We have taken into account
commitments already made to education and infrastructure.
Another commitment we have made is to property tax relief.  This
year alone, the state will be adding another $17 million of
property tax relief for mental health _ increasing our annual
commitment to $95 million.
The Competitiveness Task Force also identified residential
property taxes as an impediment to growth.  Iowa homeowners pay
too much in property taxes.  I am recommending an additional $20
million in property tax relief directly delivered to homeowners
by increasing the homestead tax credit.
Property taxes have long been a burden on our family farmers. 
To preserve and strengthen our family farms, we need to
eliminate property taxes on agricultural buildings which are
located on the family farm homestead.  This is a bold move
designed to give a competitive advantage to the family farmer,
who embodies the true character and strength of our state.
In addition to property taxes, there is another tax which is
unfair to farmers as well as small business owners, homeowners,
and retirees.  Our state inheritance tax punishes a family when
they lose a loved one.  Too many Iowa families have been forced
to go into debt or sell their possessions to pay death taxes. 
Not only is that unfair, but it is contrary to our Iowa values. 
We should eliminate the inheritance tax for family members
without delay.
To protect the safety of Iowa workers and improve our
competitiveness, we must strengthen our workplace drug-testing
law.  We have the weakest law in the Midwest.  From factory
floor to construction site, Iowa workers are needlessly placed
at risk.  Employees and passengers in the trucking, railroad,
and airline industries have had this protection for many years,
and Iowa workers deserve the same.
Cutting income and property taxes; eliminating the inheritance
tax for family members; strengthening our workplace drug-testing
law.  These are critical elements of our plan to make Iowa a
global competitor for safe, quality jobs.  They require bold
action this year.
The quality of our schools has always been one of our best
qualities.  From the one-room schoolhouse of the 1800's to the
unlimited learning possibilities of the Internet, Iowans have
always put education first.  Just last year, we made a $150

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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