A new era
Businesses craft wish lists as GOP takes control
PERRY BEEMAN Dec 8, 2016 | 6:00 pm
5 min read time
1,176 wordsBusiness Record Insider, Government Policy and LawWhat business topics will lawmakers discuss in the session that begins Jan. 9?
That’s anyone’s guess. With the GOP basking in its takeover of control of the Iowa Senate, it now controls both houses and the governor’s office. That should have some Republicans pumped to push some agenda items that couldn’t get past the now-ousted Michael Gronstal, the former Senate majority leader when the Democrats were in charge.
Of course, former House Speaker Brent Siegrist told the Cedar Rapids Gazette that his GOP colleagues must be careful not to expect fully smooth sailing. There is disagreement among the GOP ranks on some issues, and it’s not like the Democrats won’t make themselves heard. They just won’t have as big a megaphone.
Statehouse lobbyists and lawmakers privately predict talk of altering collective bargaining laws for public employees, changing abortion regulations and debating new voter identification requirements. A top priority that went nowhere last year — improving water quality — will likely focus on the GOP’s work to shift money from existing sources, if they take a swing at the problem at all. The idea of passing a sales tax to fund the long-empty state account for conservation and outdoor recreation — already a tough sell among lawmakers — is probably not going to get serious debate.
Statehouse leaders haven’t said much yet about their agenda for the session. But some business groups already have wish lists. Here’s a look:
Iowa Chamber Alliance
Four main goals:
- Cut and simplify income taxes for businesses and individual taxpayers. The group notes that the Tax Foundation ranks Iowa’s business climate 40th in its latest State Business Tax Climate Index. The group said Iowa’s tax complexity ranks among the worst in the country. The alliance has renewed its support for ending federal deductibility for corporate income taxes, as long as businesses get back that money through lower tax brackets. The alliance also wants simpler personal tax regulations, with a flattened and streamlined system that would help attract talent to the area.
- A uniform minimum wage and employee benefit system statewide. The Alliance contends that “In order for Iowa to attract investment and help our existing businesses grow, we must have a statewide wage and benefit policy rather than multiple policies that (vary) by county and municipality.” It questioned whether local counties can legally set their own minimum wages, a question lawmakers may very well debate this year. “Businesses in Iowa are forced to navigate minimum wage requirements that change from county-to-county and city-by-city. Additionally, it is unclear how each county will enforce these requirements, creating uncertainty for business owners. This uneven landscape of minimum wages also impacts economic development efforts when there is not a consistent wage across the state.”
- Continue economic development incentives and programs. The Alliance continues to support economic development programs and tax incentives, which it says “attract quality jobs, foster innovation and entrepreneurship, and help put Iowa over the top for businesses looking for a place to invest. These tools also help those already here to expand their operations.”
- Sound budget. The Alliance also called for the state to fully fund its existing obligations, as part of a move to more sound budgeting techniques. It supports “public pension reforms” and other changes to take some financial heat off local and state governments, and it is eyeing state workers’ pay packages, too. “Updating Iowa’s collective bargaining and public pension laws is overdue and will allow more flexibility for local governments and schools, as well as the state government as an employer. This is a critical element in slowing the demand for tax dollars from Iowa’s businesses.”
Iowa Association of Business and Industry
Top three priorities:
- Workforce. ABI members support continued investment in workforce development through initiatives such as Future Ready Iowa and Home Base Iowa and through state and federal reforms. ABI also supports state policies that promote safe workplaces and that allow employers to address drug and alcohol use, including prescription drug abuse.
- Competitive business climate. The state should simplify, streamline and modernize laws and regulations to improve Iowa’s business climate, ABI members said. Part of that should be statewide policies on the minimum wage and other topics to rein in “a growing patchwork of county and local government proposals to implement workforce policies,” ABI noted in its legislative proposal report. “This piecemeal approach increases administrative burdens for employers and erodes coherent economic policy. Additionally, ABI supports efforts to simplify and reform Iowa’s tax code, without shifting the burden among classes of taxpayers.”
- Environmental investment and accountability. ABI supports work on water and air quality, with proper controls. “A quality environment not only enhances the attractiveness of Iowa as a location for business and industry, but it also adds to the quality of life and enjoyment of all who live and work here,” the report noted. “ABI supports legislation that protects and improves the quality of our state’s natural resources, while supporting business and industry growth and improving the quality of life for all Iowans. Investments of state dollars in water and air quality programs and departmental services should be carefully targeted, and provide for accountability and return on investment.”
Technology Association of Iowa
Goals:
- Another $1 million for the internship program in STEM (science, technology, engineering and math) fields.
- Expanded computer science curricula, with teacher training and possible STEM teacher externships.
- Support tax reforms that drive investment in the technology workforce.
Greater Des Moines Partnership
Top five featured priorities:
- Water quality. The Partnership sees setting up a system to improve water quality as “critically important to the state’s wealth and prosperity.” The organization calls for public/private investment and permanent funding for water quality. Among the ideas that could be considered; several sales tax plans, tax credits and water quality trading.
- Corporate and personal income taxes. The goal is a tax code that encourages business growth and that stresses “equity, neutrality, simplicity and predictability.” Among the reforms the Partnership supports would be giving businesses and individuals the option to either retain the ability to deduct federal income taxes or to forego deductibility in return for a lower state income tax.
- Local option sales tax. Central Iowa communities would have more power over local sales taxes under the Partnership’s platform. Some metro communities have asked to have the ability to ask voters to approve a tax for a single community, (i.e., West Des Moines only), something that most Iowa cities already can do. State law has forced Greater Des Moines communities to vote together on local sales tax proposals, which have been roundly defeated.
- State Historical Building. The Partnership supports the renovation of the State Historical Building and State Historical Museum, a project it considers important for the East Village and for Iowans statewide. The project would improve facilities and also would make it easier to share the collection in other parts of the state.
- Future Ready Iowa. The state’s talent pipeline needs to align with business needs, which is what this program is all about, the Partnership noted. The program strives to improve education and training levels.