National Agriculture Week

Last week in the Senate, we passed Senate Resolution 108. It recognized March 21 through March 27 as National Agriculture Week in Iowa. Iowa has 84,900 farms, of which over 90 percent are owned by families. We rank first nationally in the production of corn, hogs, and eggs, are a leader in the production of soybeans, and rank fourth nationally in the number of cattle and calves fed. With the agriculture industry making up such a large part of our state’s economy, it is important we recognize the hard work and achievements of those who produce our food, fuel and fiber. We wish a happy National Ag Week to all Iowans, and hope they take time to reflect on how agriculture provides safe, abundant, and affordable food every day.

 Tax Work Continues in Iowa Senate

 Senate Republicans have long had the goal of comprehensive tax reform for the state of the Iowa. For the last several years, we have implemented major reforms to Iowa’s tax code. The tax bill passed in 2018 took the first step in simplifying our tax code, lowering rates for Iowa families and providing millions in tax relief. The following year legislation was passed to provide more truth in taxation and improve transparency for Iowa property taxpayers. In 2021 we delivered additional property tax relief for Iowans and eliminated a property tax levy. This year, we passed historic tax reform, again providing real, permanent tax relief to Iowans and implementing a 3.9 percent flat tax for taxpayers.

To achieve the goal of comprehensive tax reform, work remains to be done. This week, the Senate passed SF 2372. It is the next step in this process and will make a number of changes to modernize the tax code. It updates several sales and use tax changes, like updating the code for digital advances in technology, and also exempts full-time National Guard members from the individual income tax up to $20,000 of their pay. 

The Senate also passed a bill, HF 2552, to improve efficiency in government and help the taxpayers of Iowa. What seems to have caught the attention of a few around the state is changes to the Iowa Business Property Tax Credit. When the Iowa Legislature created the tax credit in 2013, the tax credit was designed to primarily reduce property taxes for Iowa’s small businesses. The credit does so by allowing small businesses to have a portion of their property taxed like residential property instead of commercial property.  

Current estimates suggest a number of eligible properties have not applied for this credit. Under this legislation, Iowa’s businesses would automatically get the credit without having to apply for it. This bill would help our local small businesses and improve efficiency for both Iowa’s businesses and the department working on the credit calculation and administration.

Also discussed this week was SSB 3064, which would help protect the transformative tax relief measures passed over the last several years. It is a constitutional amendment requiring a two-thirds majority in order to increase taxes on Iowans. This would make it more difficult in the future for politicians at the Capitol who overspend to decide to take that money from hard-working Iowa families. Raising taxes on Iowans should not be easy. Iowa families have to adjust their budget and live within their means every day. If the government cannot do the same, it should take more than just a simple majority to raise taxes on Iowans and take money from families who earned it.

All of these bills are important while we tackle comprehensive and meaningful tax reform at the Capitol. We have made a lot of progress in reforming Iowa’s tax code and making it simpler and fairer. It is a commitment we have kept for the last several years and one we will continue to keep.

 Helping Iowans Return to Work 

 This week the Senate passed HF 2355 to address the workforce shortage in nearly every sector of the Iowa economy. This bill includes much of the governor’s workforce proposal she introduced earlier in session.

The bill makes several changes to the unemployment system. A number of provisions in the current unemployment law date back to the Depression in the 1930s. Those concepts are largely incongruent with the reality of the current job market.

Last summer left-leaning news outlet Pro Publica investigated unemployment insurance fraud, rampant during the pandemic. It reported an estimated $87 billion in fraudulent payments occurred in the program across the country.

In an effort to reduce the amount of fraud in the unemployment insurance program, this bill implements a one week waiting period to verify the eligibility of the person applying for unemployment. A one week waiting period exists in most states and also for labor unions when they provide strike pay to their members. It is a reasonable measure to provide added security to the program.

Another policy change in this bill shifted the duration of unemployment benefits from six months to four months. With tens of thousands of job openings in nearly every sector of the economy, four months of unemployment benefits is a suitable amount of time to find a new job. Studies have shown more people return to the workforce closer to when benefits end. According to recent data, Iowa has more than 85,000 job openings and 67,000 Iowans on unemployment, so a lack of opportunities is not the reason for prolonged unemployment.

Large transfer payments from the federal government, fraud, and other issues have eroded the value of work. America’s development into the premier economy in the world has largely been founded on the value of work and reward for work. Work provides purpose and has intrinsic value in life and that value cannot be replaced by a government payment.