The Rozenboom Report – February 19, 2018
Sen. Ken Rozenboom (R)
by Ken Rozenboom
The deadline for the first funnel for this legislative session was Friday, meaning that our days last week were busy and full. This deadline propels us to focus on the issues we can realistically accomplish for this year.
The Heartbeat Bill
There is sure to be a passionate debate on Senate Study Bill 3143, otherwise known as the “Heartbeat Bill.” This legislation would prohibit abortions where a fetal heartbeat can be found by a physician using an abdominal ultrasound. An abortion would be prohibited unless, in the physician’s reasonable medical judgment, a medical emergency exists and deemed to be necessary to protect the life of the mother. Under the bill, a physician who knowingly and intentionally performs an abortion in violation of this law commits a class “D” felony which is punishable by up to five years in prison. The mother is not criminally liable.
As this issue moves forward, please contact me with your thoughts and concerns.
Health Care Solutions for Iowans
Iowans are looking for other options due to the collapse of Iowa’s individual health insurance market. Two bills went through the Senate committee this week to provide better options for Iowans, including our small business and sole proprietors who are in desperate need for solutions.
Senate Study Bill 3173 would allow certain agricultural organizations to offer health benefit plans. Under this bill, these plans would not be considered insurance under state or federal law, taking these plans out of the Affordable Care Act (ACA) requirements. Previously, Iowa had tried the stopgap measure to fix the problem for Iowans who can’t afford health insurance under the ACA, but that proposal was ultimately withdrawn. This option is for Iowans who should not have to pay $40,000 a year for health insurance. Passing this bill will let certain associations offer health benefit plans to their members in need of this product.
Another bill, Senate File 2182 allows the creation of Multiple Employer Welfare Arrangements, also known as MEWAs. The bill will remove the current time restrictions found in Iowa code, which will allow the creation of MEWAs under current federal laws and regulations. Additionally, the bill will require the Commissioner of Insurance to adopt rules to allow the creation of a more flexible type of MEWA which will be allowed once proposed U.S. Department of Labor regulations become final.
These bills are currently in the Commerce Committee so I haven’t yet had the opportunity to weigh the merits of these bills, but will continue to study them as we work through the process.
Future Ready Iowa
In an effort to encourage education and fill the gaps in Iowa’s workforce, Senate Study Bill 3087 has been presented as the governor’s Future Ready Iowa initiative, working to educate and train Iowans for the future. The governor’s goal is for 70 percent of Iowans to have post-secondary education by the year 2025.
The bill creates a series of programs to encourage education and fill the gaps in Iowa’s workforce. Some of these programs include an apprenticeship program for high-demand jobs as identified by Iowa Workforce Development, a volunteer mentor program, a summer internship program for at-risk youth, the Iowa Employer Innovation Fund to expand opportunities for credit and noncredit education and training, a skilled workforce grant program, and a program to help provide additional funds for high school students looking to attend classes at community colleges.
This bill moved through the committee to keep it as part of the conversation for the rest of the legislative session, but there may be some changes as we get more feedback on it.
Iowa’s Tax Credit Program
The tax credit dialogue continues in the Iowa Senate and around the statehouse. A healthy dialogue is always good when addressing this important issue. However, it is also a complicated issue that merits thoughtful consideration and rational debate.
There are approximately 43 different tax credits in Iowa that can be claimed against either the personal income or corporate income tax. Some have been on the books for nearly three decades and others implemented in recent years.
The expansion of Iowa’s tax credit program is a symptom of an uncompetitive tax code. Governor Reynolds announced her plan this week to modernize and simplify Iowa’s tax code and tax credits should be part of that conversation. As we look to improve our tax code, it will reduce the necessity and frequency of tax credits.
Iowans are on both sides of this issue. Constituents often email or call to encourage eliminating all the tax credits and end the corporate giveaways. Other contacts urge protecting those same programs. Unfortunately, ending the tax credit program is not as simple as hitting the delete button on a keyboard or scratching it off a sheet of paper.
No matter what the credit does, it was passed for a reason by previous legislatures. Some were passed as an incentive to expand use of renewable fuels, geothermal, wind energy, solar energy, bio-diesel or E15 fuels. Iowans are utilizing some tax credit programs for adoption, restoring historic buildings, first-time homebuyer savings accounts. Some are taking advantage of the tax credit program geared toward fire fighters and EMS personnel. There is also a program in place for lower wage earners in Iowa and an incentive program given to companies doing business in Iowa to enhance their research programs.
Eliminating tax credit programs is a complicated under-taking. Some programs may not be necessary any longer and should be addressed. Either way, it is not a good practice to just allow a program to go on forever without any regular input or oversight of its successes and failures. As Senate Republicans move forward with our pro-growth agenda, we will be taking a look at tax credits, on their own as a whole, and seeing what should continue and what can be eliminated.
Keeping our Promise for a Pro-Growth Agenda
The state of Iowa has the potential be the model of economic growth. Since Senate Republicans have been in the majority, we have advanced a pro-growth agenda. This agenda continues this session with pro-growth energy policy, lowering the cost of energy for many Iowans and job creators, sound budgeting principles, workforce development efforts and most importantly, tax reform and relief for working Iowans.
Data from across the country clearly shows states with the lowest income tax rates are consistently the states with the strongest growth in population, jobs, and even tax receipts. Pro-growth tax policy encourages investment, it rewards work, and it provides an environment for career opportunities to develop here in Iowa.
The positive news regarding the effects of federal tax reform continues at a rapid pace. With all the investment announcements by companies large and small, the country is well positioned for a period of strong economic growth. Low taxes, reasonable, predictable regulations, and an educated workforce keep good jobs here and attract investment opportunities from outside the state. In order to take advantage of that reality, Iowa must position itself with a tax and regulatory policy making us as competitive as possible with other states.
In the near future Senate Republicans will release the next piece of our pro-growth agenda and it will be bold, significant tax relief for Iowans. It will lower rates, simplify the tax code, and make Iowa competitive in the Midwest and worldwide. After the details of the plan are announced we will begin the discussion with all Iowans to achieve fairer, smarter tax policy.
