Wednesday was a difficult day for The American Independent News Network, which is the larger entity that operates The Iowa Independent. Our chief executive and founder announced two of our sister sites would close and their content would be moved to The American Independent.
A recently introduced bill could have far-reaching impact on the U.S. sugar industry, including American Crystal Sugar, a farmer-owned cooperative that locked out 1,300 Midwest workers on Aug. 1.
The chairman for Herman Cain’s Iowa effort says the campaign “relied more on the word of farmers than Washington regulators” in deciding to run an ad containing claims the Environmental Protection Agency says are false.
The Iowa Senate will remain under the control of a slim 26-25 Democratic majority when it reconvenes in January 2012.
Increasing the state’s fuel tax is the fairest way pay for fixing Iowa’s roads, two Iowa State University economists told lawmakers Tuesday.
Iowa lawmakers are currently considering an 8-cent increase in the state's gas tax. Iowa hasn't increased its 21-cent gas tax since 1989.
Arne Hallam and David Swenson of Iowa State University’s economics department testified before a joint meeting of House and Senate transportation committees that the heaviest users of state roadways should bear the largest burden for maintaining them, including out-of-state motorists and truck drivers.
“If you want to fix the roads, the most efficient way to fix the roads is charge a user fee and in the current environment, the most efficient user fee is some type of fuel tax,” Hallam said.
The two agreed that the overall impact on the average Iowan would be minor. A 10-cent increase in the gas tax would cost anywhere from $33 to $100 a year depending on an automobile’s fuel efficiency. Iowans can offset how much they have to pay because they choose their vehicles, Hallam said.
“You can trade in your Dodge Ram for a Toyota Prius,” he said.
Lawmakers are currently considering bills in both chambers that would increase the state’s fuel tax 4 cents this year and 4 cents in 2010, a move expected to bring in nearly $170 million a year for critical road and bridge repairs.
Gov. Chet Culver has repeatedly said he does not support any tax increases during an economic recession. Monday he said the $358 million in infrastructure money the state will receive from the federal stimulus bill makes the gas tax an even worse idea.
Hallam said Iowa should use the federal money for projects where a user fee, like the gas tax, can’t be imposed. Hallam also called the gas tax a fairer solution than borrowing to pay for roads, an idea pushed by Culver.
“It’s obvious that the state of Iowa has underinvested in recent years,” Swenson said. “We’ve used up much of our infrastructure, we’ve not been paying full cost, we’re probably realizing the consequences of that with slower travel times and vehicle damage. This is a cost that has to be made back up and [increasing the gas tax] is one good way to do it.”
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