Senate Journal: Page 46: Tuesday, January 14, 1997

  46 JOURNAL OF THE SENATE 2nd Day
  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, improvement of 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, increase incomes, and bring 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 dollarsof capital investment has been made
  in Iowa because of these changes.

  What we have learned is that taking bold steps to improve our
  competitiveness
  works. Being competitive means having a reputationaround the world as a good
  place to start a business, locate a plant, raise your children, and 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 is the most significant
  barrier to bringing new business and good paying jobs to Iowa.

  If we are to grow, we must attract 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." Thoseare the jobs we want! We've got to change.
  There is no question 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 how we compare to other states. Unfortunately, we are among the
  top ten
  states in personal income tax rates. And many of the states which share that
  unenviable position with us have lowered rates in the last two years. New
  York,
  Oregon, Hawaii, Delaware, Connecticut, and even so-called Taxachusetts have
  lowered income tax rates.

  A Cato Institute study found that between 1990 and 1995, those states that
  cut
  taxes the most experienced employment growth of over 10 percent; population
  growth of more than 7 percent; and income growth of almost 33 percent.
  States that
  cut taxes performedmuch 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 the 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.

Iowa General Assembly

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

© 1997 Cornell College and League of Women Voters of Iowa

Comments? sjourn@legis.iowa.gov.

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