Wednesday was a difficult day for The American Independent News Network, which is the larger entity that operates The Iowa Independent. Our chief executive and founder announced two of our sister sites would close and their content would be moved to The American Independent.
A recently introduced bill could have far-reaching impact on the U.S. sugar industry, including American Crystal Sugar, a farmer-owned cooperative that locked out 1,300 Midwest workers on Aug. 1.
The chairman for Herman Cain’s Iowa effort says the campaign “relied more on the word of farmers than Washington regulators” in deciding to run an ad containing claims the Environmental Protection Agency says are false.
The Iowa Senate will remain under the control of a slim 26-25 Democratic majority when it reconvenes in January 2012.
Sen. Larry McKibben was one of several Republican legislators who took “points of privilege” this morning to voice disdain with the current direction of legislation that aims to revise the School Infrastructure Local Option sales tax, commonly known as SILO. The plan now being considered by the Iowa Senate passed the House last week with 17 Republicans crossing the aisle to support it.
“We aren’t here just to put a rubber stamp on what’s passed by the House,” McKibben told those in chamber this morning. “We don’t have to pass this just because it has been a bipartisan effort. It’s a bipartisan tax.”
The plan calls for SILO, now optional by county, to become mandatory and no longer limited to 10 years. The legislation would replace existing sales taxes that expire every 10 years with a statewide tax that would expire in 2029. The plan increases taxes on consumers buying retail products and businesses that buy products from other states, but also decreases property taxes in some counties by roughly $30 million. Sales tax monies would go into one account for distribution to all school districts on a per-pupil basis.
Republicans have remained skeptical that the tax revenue will remain earmarked only for school infrastructure. This morning on the floor, however, Republicans discussed the impact on small businesses — especially those in more rural portions of the state — and the fact that the plan will no longer allow voters to approve the sales tax in their own communities.
Although the Senate passage of the bill was considered tenuous late last week, Republican Senators returning to Des Moines after attending District Conventions on Saturday seem especially energized to stop or change the proposed plan. McKibben said Senate Republicans are now more firmly united against the existing plan due to feedback they received at the conventions. At a press conference this morning, the lawmakers made a point of providing an alternative plan that they said was supported by the Iowa Association of Business and Industry, the National Federation of Independent Businesses and Iowans for Tax Relief — three traditionally fiscally conservative organizations.
The Republican alternative plan would allow local voters to decide whether or not to continue or end the one-cent sales tax. Local districts that continue would be guaranteed a minimum of $575 per pupil per year — even if tax revenues do not provide for that amount. Republicans said the state would make up any difference in the revenues, ensuring the $575 per pupil figure. Also, if additional revenues were collected, districts could receive additional monies from the revenue stream.
“We are prepared to discuss this and will have our amendment available shortly,” McKibben said. “We are prepared for a long day.”
Shortly after the remarks on the floor, Senators broke into their respective party caucuses and are expected to reconvene as a group at roughly 1 p.m.
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