Public Hearing on HF 807

Hundreds of taxpayers arrived at the State House this evening for the Public Hearing on federal deductibility. Speakers had to sign up in advance for a three minute time slot.

At about 8:25 there was a fifteen minute delay in the hearing to clear the taxpayers from the chamber for disorderly conduct – applause – after receiving several warnings from the Chairman.

Taxpayers came from all over the state; here is some of their testimony:

Trudy Caviness – Small business owner from Ottumwa
She and husband are small business owners. Don’t want a tax on a tax, and want to continue to stay in business and employee people.

Ken Sager – Iowa Federation of Labor
Supports the bill and believes it taxes Iowans more fairly.

Andy Warren – State director for NFIB
Mr. Warren represents 8,000 business, most of which whom employee less than 6 people. Noted that this bill is a tax increase for these small businesses. Even the bill’s sponsors announced that there are winners and losers with the bill. Half a million tax payers are the losers – the state’s small business owners which are also responsible for ¾ of new jobs in Iowa. This bill is not the way to revive our economic situation.

Ed Failor, Jr. – President of Iowans for Tax Relief
We are here about two things: honoring our past and the investment we’re going to make in our future. Young people came to the State House in busses from every regent university tonight and several private universities. We’re telling them to get out of Iowa, because if they make less than $40,000 when they graduate and they have no other tax credits, they will vote with their feet and leave the state. This bill punishes young Iowans who want to be successful. [thunderous round of applause]

Ben Johnson – University of Iowa Student
Doesn’t want to start a life, a medical practice, and a family in a state that punishes him for being successful.

Chad Airhardt – Executive Director of Waukee Area Chamber of Commerce
Opposes HF 807. Waukee is a fast growing community of young people. What will the next crop of Iowa graduates do when they can earn more in other states and pay fewer taxes? Many small businesses in Waukee are S-corporations, and tax increases will determine whether they put money into expanding, give back to the community, or pack up and leave. Lawmakers need to show fiscal restraint and not double-tax Iowa taxpayers. In Culver’s State of the State, the Governor said that this was not the time to raise taxes on Iowans – what happened to that plan?