From Sen. Amanda Ragan –
One good way to grow Iowa’s middle class is to help Main Street businesses and other employers grow. This “Main Street Tax Cut” the Senate is working on is an expanded version of the only commercial property tax cut proposal to pass a chamber of the Legislature with overwhelming bipartisan support.
We are working on a plan to provide a 40 percent commercial property tax cut for 80 percent of Iowa commercial properties. Most of the benefit goes to our local small business owners, the biggest job creators in Iowa communities. This tax cut is accomplished without increasing taxes on residential property owners or harming local schools and public services. State dollars will replace property tax dollars that used to go to schools, local governments and community colleges.
Under the Main Street Tax Cut, we would put $50 million a year into a new Business Property Tax Relief Fund beginning July 1, 2014. The permanent, on-going appropriation will grow by $50 million each year that the state’s revenue increases by at least 4 percent. Once the $250 million goal is reached, the annual investment will be maintained.
Local business owners and community leaders have made it clear that they supported an effort to cut commercial property taxes for every business, help small businesses the most and grow Iowa’s middle class.
Another democrat proposing another form of a welfare program. This one being for towns to offset the cost of cutting taxes. It’d be great if the taxes were just cut but what makes this so stupid is that they’re setting up a “fund” to make up for the tax cuts to the cities. I’m sure it will soon be broke and they’ll be running around looking for ways to fund it, probably by cutting other essential funds.
I’m confused here, how are small business owners, paying minimum wages, the biggest job creators in Iowa communities. Is that because the small business owners, that belong to the Chamber, don’t want big business in this town because that would raise the wage base. I agree with LVS, about where the money comes from. How about giving me a 40% cut on my home property taxes, which in turn I could spend in the small business stores. Mason City has already lost a large tax base, with the demolition of all the flood houses, so lets turn around and give some more property tax money away. Oh, I forgot, the states going to make up the difference. I guess that would be me.
A 40% cut in taxes and a final appropriation of 250 million dollars. And the say it won’t affect property tax, schools or public services. The money will come fro State money. Where does state money come from? I really have trouble believing this will not end up costing us. Why 40%? Why not 20%? Are we that far out of whack with other states or is this just more B.S. to get it through?