CEDAR RAPIDS — Democratic gubernatorial candidate Cathy Glasson sharpened her call for major reforms in Iowa’s Research Tax Credit today in wake of the news that Rockwell Collins will move its executive offices out of Iowa after collecting $14 million in subsidies from Iowa taxpayers last year alone. Rockwell Collins had revenues of $5.26 billion but paid nothing in Iowa income taxes in 2017.
“I’m sick and tired of it,” said Cathy Glasson. “It’s time to make big corporations in this state finally pay their fair share. Rockwell Collins is just the latest example of the corporate rip-offs and the rigged economy in this state. Thousands of minimum wage earners who work 40 hours a week are living in poverty while multi-billion dollar companies are collecting millions in corporate welfare from Iowa taxpayers every year. Working people have had enough.”
Rockwell Collins is one of 29 companies that paid no income taxes in 2017 but were still given gifts from Iowa taxpayers of $66 million in research tax credits last year alone. Since 2009, Department of Revenue Data shows these 29 companies collected $375.4 million in research tax credits. 80% of these corporate credits were given to companies that paid no state income tax.
“It’s really pretty simple,” Glasson said. “Regular Iowans shouldn’t have to keep footing the bill for Kim Reynolds’ corporate backers. It’s time to get the billionaires, the CEOs and the big corporations to pay their fair share in Iowa. They need to know that their days of controlling our state government are coming to an end.”
Glasson pointed out that the corporate tax credits given to Rockwell Collins in 2017 alone would have nearly been enough to save the two state mental health clinics closed by former Governor Terry Branstad in Mt. Pleasant and Clarinda. Branstad and his successor Kim Reynolds decided to cut the budget of $15.7 million for those mental health facilities while writing a check for $14 million last year to Rockwell Collins.
“It’s outrageous,” Glasson commented. “Rockwell Collins is laughing all the way to the bank. This company gets a big check from the State of Iowa while paying nothing in income taxes. Iowa kids and Iowa patients are the ones who are really paying the price with cuts to our schools and mental health facilities shutting down.”
Glasson challenged Governor Kim Reynolds to step up and act. “It takes a leader to admit when you’ve made a huge mistake,” Glasson commented. “They’ve squandered away nearly a billion dollars and now they’re trying to cut critical services to the bone. It’s time for them to be honest: Iowa’s Research Tax Credit is out of control and irresponsible.
“As Iowa’s next Governor, I’ll direct my staff to conduct a thorough line by line review of every corporate tax credit being issued, “ Glasson concluded. “I’ll fight to freeze credits to profitable companies who are not paying state income taxes, paying all employees and contractors at least $15 and not giving workers the opportunity to join a union or employee association. It’s time to end the corporate welfare.”
Cathy Glasson, 59, is the President of SEIU Local 199 representing thousands of nurses, health care workers and school support employees across Iowa. She is a registered nurse who worked in the intensive care unit at University of Iowa Hospitals and Clinics where she led the effort to unionize her fellow nurses 18 years ago. She lives in Coralville, Iowa with her husband Matt, a labor educator.
Once again, you all knock what she says but don’t have any defense of your own position. Why are we giving all this money to a company that is on its way out of Iowa?
Rockwell Collins isn’t on their way out of Iowa. Just the high level executive positions are being merged as a result of UTC’s acquisition. Rockwell Collins will still continue to offer boatloads of very high paying positions in Cedar Rapids and all of those employees will have their incomes and homes taxed the ba-geezus out of.
Why don’t we pull this hard line rhetoric on the farmers in this state? Now there is a group of people that take and take and take, but put nothing into state coffers. At least Rockwell Collins has the boatloads of high paid employees that contribute to the tax rolls.
I said earlier that the executive part is already moving. Little by little, they will move out the other upper positions. Winnebago is doing it. Right now, I don’t believe there are any upper level positions in Forest City.
Have you ever seen the Rockwell Colin’s Campus in Hiawatha?!?! The majority of those jobs are not going anywhere. They have too much property and intellectual assets to just pack up and leave. Yes, some high level executive positions will leave as part of the consolidation, but Rockwell will continue to hire high paying engineers and scientists in Cedar Rapids for a very long time.
As for Winnebago? Who knows. They are a traditional manufacturer that can find a workforce pretty much anywhere (like Mexico). Rockwell Collins requires a very specialized and educated worker and consequently their operations are nowhere near as portable.
More liberal B.S.
By ALL means, I hope that this Marxist wins the Democratic nomination … come on, Dems – NOMINATE her!
I wonder how the Governor will feel when RockCol moves to Florida. The executive move is already happening. Very similar to what happening at Winnebago. 5 years from now there won’t be a Winnebago Industries in Iowa.
I wonder what Bodacious and the libs will say when Obama pisses away millions on Solyandra. It was over 500 million if I remember. Oh, wait he already did but the lib bot Bodacious didn’t utter a peep.
She is off her rocker, they pay taxes and as one of the largest employers in Iowa, we receive the high income tax that every one of their employee pays.
Joey Bats!