Guest Column by Senator Randy Feenstra

Democrats $56 Million Tax Hike is Politics as Usual

The Democrats eliminated major tax deductions and exemptions for Iowa flood and tornado victims in the 2009 legislative session. They also did away with the teachers tax deduction, college tuition assistance tax deduction, and the business depreciation tax deduction. These deductions put over $56 million back into the State General Fund.

The elimination of these deductions were never communicated to Iowa citizens or their accountants. The Democrats eliminated these deductions that have been available for years. The Democrats made the tax increases retroactive to the 2008 tax filings that were due April 15th. Iowans had no idea this tax increase was going to occur when they filed their 2008 return. Now the Department of Revenue has thousands of wrong tax returns and they are demanding payback for this tax money.

Since this tax hike was done under a cloak of secrecy due to political posturing under the claim of “we never raised taxes,” the Democrats find themselves in quandary.

To fix the problem, all Iowans who took these deductions must file an amended tax return or, hope they’re not audited which could result in a 5% tax penalty plus interest. The Iowa Department of Revenue has up to three years to identify these deduction errors and interest accrues until the money is paid. This becomes an expensive violation for something taxpayers did in good faith.

After Iowa taxpayers caught this political scheme, Governor Culver stated on Wednesday July 8th, that he would look at “any and all options” to address this snafu. The Vice Chair of the Senate Ways and Means Committee, Sen. Matt McCoy, noted the issue got knotted up with other tax proposals and stalled during the 2009 session.

Lets be crystal clear, this was done with no regard to Iowa taxpayers. I spoke on the floor of the Senate three times demanding that these deductions be passed for the flood victims, teachers, and businesses. I offered amendments to make sure these deductions were restored but got voted down by the Democrats. Every Democrat Senator knew the ramifications of not communicating this tax increase but they decided to play the political game of “We don’t think Iowa citizens are smart enough to catch this tax increase.”

It’s very disappointing when the Democrats call for government transparency but do things that contradict this very thought. Frankly, it seams the Democrats no longer care about Iowans; rather, for them it’s about winning elections at all costs. This is truly a failure in good government.

Senator Feenstra resides in Hull and sits on the Ways and Means, Education, Rebuild Iowa, and Appropriations Committees. He is also ranking member of the State Government Committee.

Having it Both Ways

No surprise here, Governor Culver is asking the Iowa Department of Revenue to hold off on collecting tax refunds that were issued to flood victims. This comes after the realization that these victim's were taxed on the refunds thanks to Legislative Democrats and the Governor choosing not to couple the Iowa tax code with the federal tax code.

During the legislative session, Democrats had ample opportunity to couple the codes but they chose not to. Now, as the governor is publicly ramping up his re-election campaign, he wants to backtrack, safe face and not punish these flood victims. Too little too late if you ask us. With a $160 million revenue shortfall in the Iowa budget, Democrats need the taxes. We don't see this problem going away anytime soon.

Here's the TV story explaining the problem.

When is a pay freeze not a pay freeze?

Only in state government can a freeze on salaries mean a 4.5% increase in pay. In February, of this year, the Governor agreed to give a $120 million pay increase to state employees. But wait, the headlines were screaming that a pay freeze was going into effect for the upcoming fiscal year.

While private employers and employees in Iowa are struggling to keep their doors open the Governor and legislative Democrats continue to spend and spend and spend.

Following the announcement the Governor’s team and his big labor buddies were crowing that this was a contract both sides could be proud of. It was also stated that this new contract reflected the current economic realities facing the nation. Well that $120 million dollar pay increase would go a long way to solving the nearly $1 billion budget gap the Governor and legislative Democrats have created by their reckless spending.

Well it turns out that in state government a freeze means a pay increase.

(The dirty details are below)

Union or Classification - Pay Increase
AFSCME - Central and Community Based Corrections (CBCs) - $39,789,422
Iowa United Professionals (IUP) - Social Services and Science - $8,877,590
State Police Officer's Council (SPOC) - $2,702,246
Judicial Public, Professional, and Maintenance Employees (PPME) - $229,660
Judicial AFSCME - $1,811,551
Judicial Exempt - $2,402,719
Non-Contract - $13,820,381
Board of Regents - $51,167,428

Total = $120,800,997

Here is the rest of the story

Since the end of session there has been a lot of fluffy political rhetoric coming from the other side of the aisle. Words like reorganization, budgeting responsibly and accountability. Well as the late great Paul Harvey would say ………… And here is the rest of the story.

Over the past three years the Governor and his legislative allies have spent and spent and spent without any thoughts on what tomorrow was going to bring. Well tomorrow has come and there was no plan in place to deal with the problems that the state is now facing. In fact the nonpartisan Legislative Services Agency, the bean counters for the legislature, has estimated that Iowa is facing nearly a $1 billion deficit for next year.

Is this being accountable to the taxpayer or budgeting responsibly?



If you look at the last time Republicans were in control of the budget spending was held below the rate of inflation. Over the past three years spending has ballooned out of control and well past the rate of inflation. If the Democrats would have maintained spending levels at typical historical levels there would be no talk of a budget crisis.

Spending at the rate of inflation; now that would have been responsible budgeting.

Contradictions Galore

There is a bake sale taking place at the Capitol today and a dessert auction with all proceeds going to the Iowa Food Bank. A worthy cause and decadent sweets and treats abound. There are so many treats, that if you think of the one thing your grandma made for you as a kid, it is probably being sold here today. The contradiction part is that all this baked goodness is on behalf/part of Lt. Governor Patty Judge's challenge: Your Heart is in Your Hands. Judge is challenging Iowans to live healthier lives by exorcising more, eating well and kicking bad habits. She says in an e-mail to all state employees, "as a former nurse -- I know that our health begins with each of us." So why is she promoting calloric overload in the form of Oreo Layer Cake?

This is from the Lt. Gov's challenge web site http://www.ltgovernorschallenge.us/:
The Lieutenant Governors' Challenge is a 12-week reward based program. Participants may choose to work toward heart health through fitness choices, health choices, or both.

Great, we should all try to live healthy lives and if you set out on a public challenge like this, you should stick to it, not help Iowans deviate from their wellness plan by promoting unhealthy sweets. We all love a good cookie, but is this event really appropriate for the promotion of health and well-being? We say, NO.