The Rozenboom Report – February 11th, 2022
by Senator Ken Rozenboom
The Senate continues with subcommittee and committee work on a number of issues. I chaired a subcommittee on Tuesday to discuss SF 2152, a bill related to the amount of land owned by the Department of Natural Resources (DNR). In 2018 we required the DNR to submit a report to General Assembly giving an inventory of all land managed or owned by them. The DNR created an interactive map that shows this state-owned or managed land in great detail. You can access that map at https://arcg.is/vqSb4.
Senate File 2152 requires the DNR to update the map within 30 days of acquiring new property. The intent of this bill is to increase government transparency, and to monitor the amount of land the state owns.
Iowa is well known for its whitetail deer population, and each year the deer hunting season brings people from all over the nation to Iowa. Currently, 6,000 licenses are available for nonresident deer hunters each year. Senate File 2142 would raise that number to 7,500. A subcommittee met on this bill Tuesday and recommended passage. This bill could attract more people to visit Iowa, bringing their dollars with them. It also is a measure to help control the deer population in Iowa.
The discussion on tax reform continues at the Capitol. The historic income tax relief in 2018 was only a first step. Time after time, Iowans have told us they want bold reforms. Senate Republicans again intend to deliver on that promise and have proposed a bold plan to help hard-working Iowans, make Iowa more competitive with surrounding states, and simplify a complicated tax code.
Over the next several years, Senate File 2206 reduces the personal income tax rate to 3.6 percent for all taxpayers, implementing a flat tax for Iowans. This change alone will bring Iowa from one of the states with the highest income tax rates to being the fourth lowest tax rate in the country among the states that have an income tax. The bill also completely restructures the Taxpayer Relief Fund and turns it into the Income Tax Elimination Fund. It also directs that the fund be used in the future to continue cutting income taxes with a long-term goal of completely eliminating the income tax in Iowa.
SF 2206 also starts to untangle the complicated tax code that has been developed over many years. The reason tax credits are created in the first place is because Iowa’s tax rates are so high. The credits are created as a band-aid for uncompetitive tax rates to try to attract people and employers to the state. The real solution is much simpler than a complicated system of credits and exemptions. It’s lowering the rate. Our tax proposal drives down the corporate tax rate and eliminates $141 million in tax exemptions and credits.
Finally, the bill simplifies a complicated sales tax system and streamlines over one thousand jurisdictions into a unified sales tax rate. This means the Local Option Sales Tax (LOST) will be incorporated into a unified sales tax rate and still ensures the one cent will be remitted back to cities and counties. Because of this change, the Natural Resources and Outdoor Recreation Trust would be funded. This proposal is a responsible approach to funding a priority of many Iowans.
During her condition of the state speech last month, Governor Reynolds highlighted her plan to address the workforce shortage in Iowa. That bill, SSB 3093, passed through subcommittee this week and is expected to be considered in the Commerce Committee next week. It’s a large bill covering several topics, but the overarching goal is to help address the workforce shortage impacting nearly every sector of the economy.
One policy component in the bill calls for a one week waiting period for benefits. This change helps address the rampant and costly fraud in the unemployment benefits system. The fraud problem has become so bad last summer even liberal news outlet Pro Publica wrote a detailed account of the fraud in the program. That story estimated $87 billion in improper payments were made across the country. The one week waiting period will give Workforce Development officials a period of time to evaluate the application for benefits and root out some of the fraud in this program.
SSB 3093 also moves the duration of unemployment benefits from 6 months to 4 months. Studies have shown unemployed people return to work faster as the deadline for benefits approaches. With so many aspects of the economy struggling to find workers and some employers closing their doors because they can’t find help, it’s time to address the barriers to re-entering the workforce for some the unemployed. It also broadens the definition of suitable work. If suitable work is offered, a person on unemployment must take that position or lose benefits.
Over the last two years the blowout of federal spending, transfer payments, and extended benefits has eroded the value and meaning of work. Government payments replacing work has negative implications not only for the economy in general, but it also has negative impacts on individuals and families.
Work has value in so many ways. It not only benefits the employer, the customer, and the economy as a whole. It also benefits workers with the satisfaction of earning a living, providing for their families, and finding purpose and reward in their work. Working hard, even in difficult circumstances, develops character, teaches important life lessons, and prepares us for challenges inherent in life.
