Icy Conditions Keep Eggs & Issues Numbers Down

Sen Ken Rozenboom talks about budgets and tax reform during Saturday’s Eggs and Issues.

Oskaloosa, Iowa – A fresh coating of ice impacted the attendance at Saturday morning’s Eggs & issues inside Smokey Row Coffee House.

Rep. Guy Vander Linden and Sen. Ken Rozenboom were able to make it to the morning question and answer session. Missing was Rep. Larry Sheets, who would have had to travel from the Moulton area to attend.

Oskaloosa Mayor Dave Krutzfeldt was the moderator of the morning, and coffee was provided by MidWestOne.

Even with fewer people, the questions were asked of the legislators on a variety of topics.

Those topics most prevalent were taxation and the budget, as well as Medicaid funding.

Chad Farner asked what kinds of plans were being put in place to shore the budget up with a 1.7 billion dollar tax reform bill that was being proposed. “What kinds of plans do you have to cover that loss of revenue.”

“Well, that is absolutely the question,” said Vander Linden. “If we’re going to do tax reform, that includes tax cuts, we’re going to have to pay for it.”

Vander Linden said there are some margins “because there are opportunities to do away with some tax credits.”

“Iowan’s are going to get a significant tax cut in their federal tax, which is going to provide opportunity for tax cuts at the state level,” added Vander Linden who said, “the bigger the cuts, the more difficult it will be within the appropriations process.”

Rozenboom agreed with Vander Linden, saying that the proposed tax reform bills are big. “Tax reform is a complicated matter. And current tax law policy in the state strikes most of us as a combination of tax breaks and tax credits and deductions and exemptions that have accumulated over time. While most of those were probably a good idea at the time, as time passes on, you end up with something that is convoluted. A difficult system to manage.”

Rozenboom said one of the driving factors behind tax reform is nearly 9% of income tax and says that the corporate tax is 4th highest in the country. “For me, that’s a problem.”

Eric Palmer asked Sen. Rozenboom about a tax cut proposal that would cut 1.7 billion dollars of the state’s annual budget of 7 billion dollars.

Palmer asked if Rozenboom would be in favor of the bill, and if not, “would this be a revenue-neutral type of tax cut, or is it going to further cut into the state revenues.”

“Well, let’s get the numbers established first,” said Rozenboom. The 1.7 billion that people refer to, I believe, the only time I’ve heard that number is in context from the governor’s tax proposal. The 1.7 billion is over a period of time.”

Rozenboom said he probably would support such a bill “under the heading of keeping legislation moving forward.”

“We’re a long ways from voting on a final package, but specifically will I vote for it if it comes to the Senate floor this week? I would say it’s very likely.”

The next Eggs and Issues is scheduled for March 10 beginning at 8:30 am inside Smokey Row.