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.
A new study by the Iowa Fiscal Partnership calls for changes to the state’s tax policy to help cities still reeling from this summer’s floods.
A city’s tax base may be declining due to a loss of business or residential property, but at the same time it is being asked for more services to deal with flood recovery. Because a reliance on regressive taxes (like property taxes or local option sales tax) will only make matters more difficult, IFP suggests more progressive forms of taxation to raise revenues.
Utility franchise fees, local-option excise taxes on alcohol or cigarettes, increased gambling taxes, and the local-option sales tax are not sensitive to the income of those that they tax, and disproportionately impact low-income residents. On the other hand, the local-option income tax, the use of impact fees, and the application of payments in lieu of taxes by tax-exempt properties are all ways for cities to meet their budget needs without undue impacts on low-income families. These revenue options would also help cities move away from their excessive reliance on tax-increment financing (TIF); although at one time targeted at blighted urban areas, TIF is now primarily used in the suburbs and can undermine regional cooperation among cities.
The Cedar Rapids Gazette reported that an analysis by the National League of Cities found Iowa cities are more reliant on property taxes and less reliant on local sales and income taxes than the national average.
That places a heavier tax burden on low-income Iowans. Lawmakers could reverse that by basing new taxation on income, rather than on purchases or property.
Rep. Tyler Olson, D-Cedar Rapids, told the Gazette that lawmakers are likely to consider the ideas proposed by IFP.
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