Dems: Governor’s irresponsible tax proposal delayed

October 15, 2015

This week, Iowans faced an unprecedented attempt to create a massive corporate tax cut when the Branstad Administration circumvented the traditional legislative process.

In 2013, the Branstad Administration asked the Legislature to exempt machinery and equipment used in manufacturing from sales tax. While the idea has merit, we’d approved a $300 million business property tax cut that year. Passing an additional, on-going corporate tax cut would have been fiscally irresponsible at that time.

The Governor is now trying to put this massive corporate tax cut in place by bypassing the Iowa House and Senate. This doesn’t sit well with many Iowans, especially after the Governor vetoed a bipartisan compromise to invest $56 million in our local schools, saying the state couldn’t afford it.

Now here we are a few short months later and the Governor wants to cut corporate taxes by as much as $70 million a year without legislative approval. Pushback from Iowans has prompted the Administration to delay the proposal until next summer, giving legislators time to more thoroughly vet it during the 2016 session.

We stand with educators, parents and local leaders decrying this proposed rule change. They are rightfully appalled that our students and schools are once again being brushed aside in favor of big business. After all, who will fill the high-tech manufacturing jobs if our students don’t get the education and training they need to keep Iowa competitive in the global economy?

The Governor should reconsider and drop plans for a costly tax cut that will continue to undermine our ability to educate our kids. Learn more about the proposed rule change at


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