Bad for Business Bill: Combined Corporate Reporting

Just as spring comes around once every year, so does a bill at the State House calling for combined reporting of corporate income taxes. However, unlike spring the Combined Reporting Bill is loathed by the state’s corporations and its largest employers.

The bill is Senate File 211, filed by Senator Keith Kreiman (D-Bloomfield). Combined reporting would require corporations such as 3M, who do business in states outside of Iowa, to report their TOTAL income on their Iowa State income taxes – not just their Iowa income as the law is now. 3M’s Iowa State income taxes would increase by 500%.

This bill is bad for corporations in Iowa and will discourage other multi-state corporations from coming into the state and creating jobs for Iowans. Combined reporting is favored by some Democrat legislators because it would generate millions more corporate tax dollars for the state. Taxing corporations exponentially is not in the best interests of Iowans who are worried about the stability of their jobs or are already in search of new ones.