Roberts: Reduce Unemployment by Cutting Taxes
- Monday, December 21, 2009, 4:31
- Iowa, News Center
- 1,349 views
- 10 comments
Republican gubernatorial candidate Rod Roberts is calling for the elimination of the state corporate income tax to help create jobs for unemployed Iowans. The state’s unemployment rate increased to 6.7% for the month of November, which is one of the highest unemployment rates for the state since the 1980s. Roberts says the state can reduce its unemployment rate by creating a better business climate in Iowa through the elimination of the corporate income tax.
“We need bold solutions to tackle Iowa’s historic unemployment rate,” said Roberts, a five-term State Representative from Carroll. “Out-of-work Iowans and their families are struggling. Elimination of the state corporate income tax will help put Iowans back to work in 2010.”
Roberts points out that the U.S. News and World Report earlier this year called Iowa the second-worst state in the country to start a new business. Iowa needs to change the perception that it is “bad for business,” according to Roberts. He says that elimination of the corporate income tax will lure new companies to the state that will ultimately provide new jobs to help the over 113,000 Iowans who are currently out of work.
“The unemployment rate is as high as it has been in over 20 years. Iowans need action” said Roberts, an Assistant Minority Leader in the Iowa House of Representatives. “By eliminating the corporate income tax, not only will new businesses be drawn to the state for its lower taxes, but existing Iowa businesses will also be in a better economic position to add employees.”
Roberts notes that his plan to eliminate the corporate income tax shows how he fundamentally disagrees with Governor Culver on how to put Iowans back to work. Governor Culver and legislative Democrats have borrowed millions of dollars to fund a government-run program called I-JOBS that will provide payments for select business ventures. Roberts disagrees with this government-run plan to create jobs.
“The private sector is better suited to create jobs than state government,” said Roberts. “Iowa businesses have long-term success because of entrepreneurship, good management, and hard-working employees. It’s unclear how the Governor’s plan to dole out taxpayer dollars to select business ventures will encourage these good business practices.”
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Good for Rod Roberts. He gets it!!!
Maybe it’s time for the BVP supporters back away from the Kool-Aid and pay attention to a real conservative!!!
A simple solution that would be extremely effective for the long term future of our state! We need Iowa to be “open for business”
If Roberts can start getting some name recognition out there..he could get some momentum working his way. His problem is that his fundraising has dried up and he’s got very little in the way of campaign organization.
Personally, Rod Roberts could be an ideal Lt. Governor pick….
Proclaiming American Greatness
FOR IMMEDIATE RELEASE SATURDAY, DEC. 5, 2009
CONTACT: Alan Phillips (309) 824-9298, ctw46@netscape.net
An Incentives Program for Restoring the American Economy to Full
Employment
MANCHESTER, Iowa (Dec. 5, 2009) –
Dr, Alan Phillips, Republican from Illinois, addressed a group of Iowans, in Manchester, Iowa today and proposed an incentives economic program which focused on job restoration for Iowa and the nation.
According to several guests, this proposal seeks to lower state and federal taxes on corporations that return jobs to the U.S. from overseas, or create their numerical equivalents in new occupations for American workers. Currently, between Iowa’s corporate tax rate and that of the federal government, businesses must pay 41.6 percent to government, highest of any state.
This excessive business taxation rate has given the U.S. a dubious distinction of being the world’s leader in corporate taxes. High corporate taxes are a “jobs killer” that must be dealt with to improve the competitiveness of American business. Although various members of Congress have suggested a five or ten percent cut in federal taxes on companies, the speaker feels those reductions are too small to make a difference to companies planning to relocate.
Phillips proposes “to bring the jobs back for some 18 million jobless-underemployed workers, the U.S. combined corporate tax rate should be cut to 5 or 10 percent.” In the final analysis there is needed a new partnership between state and federal lawmakers to work toward the goal of significantly reducing the overall tax burden on companies in the U.S.
About Proclaiming American Greatness, it is a group promoting American values, freedoms and constitutional liberties, nationwide.
How disappointing to see such ideological blindness. Why would we think increasing corporate profits would translate to anything more than lining the pockets of corporate executives? Anyone remember way back to the period of 2002-2007? Corporate profits spiked in that time. .. where are the jobs? Corporate executive income also spiked in that time. Hmmm… thats weird, the theory says jobs would be created. Can we please stop loyalty to a theory when reality clearly shows us different results than theorized???
I’m not opposed to cutting corporate taxes on principle, but it doesn’t create jobs, and we already know that from experience. Customers buying their products and services is what creates jobs. A business has no reason to expand if it doesn’t have additional demand to meet.
Robpo..
You realize that its not just “big corporations” that pay corporate taxes…its the small businesses that make up the majority of our economy.
America has the 2nd highest corporate income tax rate in the Western Hemisphere behind Japan. And you liberals sit there and piss, moan and complain about companies going overseas? Well no wonder they’re leaving!
Also Robpo..what business of the government is it to dictate how much a company pays ANYONE. If you want to talk about lining the pockets…why don’t you mention anything about how the average salary of a federal government employee is $71,000… Isn’t government service supposed to be about serving the people?
Hawk, you know, I agree strongly with you to a certain degree. Yes, small businesses pay taxes also, and there is no reason to expect giving small business higher profits would translate to meaningful job creation either. They expand to meet demand. A given small business here or there would rehire someone they need because they otherwise cut to bare bones to survive bad economic conditions. That rehire is a good thing. So, we can compromise? Cut taxes for small business only. They are the ones providing a bigger benefit for America, they are the ones who need it, and as you said, they “make up the majority of our economy”.
I agree on principle we should cut corporate taxes. But it won’t create jobs, we already know that. Besides, in reality, no corporation pays their full burden of taxes anyway. Small businesses even cut corners to avoid as much tax burden as possible. Its the American way. That said, I do believe eliminating corporate taxes would bring business to America, but I’m not convinced the benefits would outweigh the negatives. There would need to be a large stick to accompany that giant carrot so, as with everything else, it isn’t abused at our expense.
The government has no business to dictate how much a company pays anyone, unless the stink of corruption has spoiled the market to the benefit of the receivers, and again, at our expense (citizens and consumers). AGREED, fed employees are getting fat at the trough, as well as private contractors and every other business receiving welfare (contracts) from the government. When corruption has spoiled the market, as is obvious with top corporate executives and Boards, I expect, I demand the government step in and clean it up. Granted, I don’t have much faith in the endeavor, but there is no other remedy. I don’t have much faith in the government cleaning up its own house either, but I’m down for starting there. The gov has bigger debt issues than any corporation.
First off Robpo…a corporation doesn’t pay taxes in the first place…..WE the consumers do..in the higher costs for products passed on to consumers…
2nd…Iowa has the highest state corporate income tax in the Midwest….is it really any wonder why major Iowa based companies like Maytag, Blue Bird Bus, Electrolux are moving out of state or shutting down all together?
We have a business climate here in this state that PUNISHES economic success..not promotes it. Hell, Iowa’s law slaps a 12% tax on corporate incomes over $250,000! What business is going to want to come into our state with that burden around our necks?
How could this be “abused at our expense”..companies come here…hire employees…make products, sell products…voila..state revenues generated from real economic activity…not from “government stimulus”….
Agreed Hawk. I agree with what you said, other than your naivete that companies couldn’t abuse government policies at our expense.
Iowa should lower its top corp income tax rate if we want to attract large businesses to the state. Even though it blows a bigger hole in our budget problems. We have to take into consideration the lower cost of living in Iowa too. Companies that may relocate to Iowa have to pay much less in salaries compared to most states.
To be honest, I was mixing two separate issues, fed corp taxes and state corp taxes. Lowering the state corp tax to draw business away from other states is something that can bring jobs to Iowa. On the federal level cutting corp taxes won’t create jobs, as has been proven by experience.