Whitver, Schneider to lead Iowa Senate GOP; Failor out as top aide

Iowa Senate Republicans elected new leaders today following Bill Dix’s unexpected resignation on March 12. Jack Whitver moves up from Senate president to majority leader, and Charles Schneider moves up from majority whip to Senate president. Amy Sinclair, who has been one of four assistant majority leaders, moves up to majority whip. Jake Chapman will take her place as an assistant leader.

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No magical economic boom will make Iowa GOP's tax cuts affordable

Iowa Senate Republicans are barreling ahead to debate a regressive tax plan that would reduce state revenues by 10 to 15 percent within five years. Senate Ways and Means Committee Chair Randy Feenstra, lead author of Senate File 2383, continued to describe his proposal as “bold, pro-growth tax relief” after a non-partisan analysis projected massive revenue losses.

Meanwhile, newly-released records show that in communications with other GOP senators, Feenstra greatly understated the cost of an earlier draft of his tax proposal. The documents don’t indicate whether the head of Senate’s tax-writing committee misunderstood numbers provided by the Iowa Department of Revenue or misrepresented them to downplay the price tag. (Feenstra has not responded to my inquiry.)

What is clear: the Department of Revenue never predicted that deeply cutting taxes would produce “excess” economic growth. Which isn’t surprising, since no economic boom materialized in states like Kansas and Louisiana after Republicans destroyed those states’ ability to pay for essential services.

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Save the Iowa State Historic Tax Credit

Adapted from a post Tanya Keith wrote for Hat Trick Renovation, the blog for her company, where she works to restore historic houses in the urban core of Des Moines. -promoted by desmoinesdem

The current version of the Iowa Senate tax bill would reduce the Iowa State Historic Tax Credit from $45 million to $35 million, starting next fiscal year, and repeal the tax credit in 2025. That would be a huge loss for neighborhoods and main streets in Iowa. Many of our projects at Hat Trick Renovation are only viable because of state historic tax credits. Often older buildings need so much work, it can cost more to restore them than the building will eventually be worth. However, once restored, these buildings become beautiful, irreplaceable structures that will last far longer than modern day construction.

Not only are tax credits a vital part of our work in saving historic buildings in Des Moines, they are also good for the financial health of our state.

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Republicans blow a billion-dollar hole in the budget (updated)

Matt Chapman reports from today’s Iowa Senate committee hearings on a massive tax bill published the previous day. -promoted by desmoinesdem

Senate Republicans dropped Senate Study Bill 3197 on February 21, scheduling a subcommittee on the tax plan first thing the following morning and a full Ways and Means Committee to consider the bill shortly after lunch. They had employed a similar shock-and-awe tactic last week to get Senate Study Bill 3193 through the legislature’s “funnel” on the last possible day. That bill, modeled after a Florida law deemed unconstitutional, called for drug testing Medicaid and food assistance (SNAP) recipients, along with quarterly instead of yearly recertification and work requirements.

In opening comments on his tax proposal, Senate Ways and Means Chair Randy Feenstra said SSB 3197 was “bold” and would save Iowans an average of $1,000 in taxes. You can watch the whole meeting on video here.

Senator Pam Jochum, the ranking Democrat on the committee, said she was looking forward to input from EMS and firefighters, among others, since this bill would end deductions. She was also concerned that there was no fiscal impact statement and wanted to be sure it fit the budget. Jochum asked Feenstra if he had any data he could share.

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Iowa Senate Republicans seeking to end solar tax credit

The official Iowa Senate Republican tax plan would repeal the state’s popular Solar Energy Systems tax credit later this year.

Ways and Means Committee Chair Randy Feenstra introduced Senate Study Bill 3197 on February 21 and scheduled a subcommittee meeting on the 130-page bill for 8:00 am the following morning. Sweeping changes to individual and corporate income tax rates could reduce state revenue by more than $1 billion annually, though the details are unclear, because no fiscal analysis is publicly available.

Although the bill would create a new legislative committee to “comprehensively review and evaluate each tax credit” (pages 31-2), it also calls for scaling back or eliminating some tax credits, with the solar incentive the first to go.

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