Weeks of work by the Legislature on Senate File 209 is removed in one day
Today Governor Branstad item-vetoed two significant tax relief portions of Senate File 209, the tax and spending compromise bill.
Iowans for Tax Relief President Ed Failor, Jr. issued the following statement:
“It is discouraging to see Governor Branstad’s item- vetoes which remove significant tax relief options in place to help Iowa job creators and Iowa families. A bi-partisan group of Legislators have worked for over six weeks on the compromise bill, and it is built with the best intentions for the taxpayers of Iowa.”
The veto message included the removal of two parts which are important to Iowans.
First, the Governor is discouraging Iowa job creators from further investing in their business. The item-veto of the Bonus Depreciation provision is unfair – Iowa’s small businesses should be encouraged to increase business investment, not be penalized by the Governor. Government needs to get out of the way of Iowa’s businesses, both small and large, and taking away this tax relief provision could end up slowing Iowa job creation.
Second, Governor Branstad took away important tax relief specifically targeted at low-income Iowa families with his veto pen. The Earned Income Tax Credit (EITC) would have helped Iowa working families make ends meet through a tax credit which would pay for important needs, like child care and groceries.
Iowa lawmakers have been working to find common ground on Senate File 209 since March 9, 2011. The majority of the bill which was signed by Governor Branstad was supplemental spending, however, one other key provision which was signed into law was the creation of a Tax Relief Fund (renamed the Taxpayers Trust Fund) which will capture excess state tax collections (up to $60 million) and return it to Iowa taxpayers in the form of tax relief.
“We applaud the work of Iowa lawmakers to find common ground. We look forward to finding additional options to provide tax relief to Iowans,” continued Failor.
The 2011 Legislative Session is scheduled to end by April 29, 2011, which is the scheduled 110th day of work. If the Legislators are not adjourned by this date, the session will continue and by law they will not be paid for their extra days of work.
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