The 2018 session ended with last-minute approval of a tax plan that gives most of the benefits to out-of-state companies, millionaires and non-Iowans.
I voted “no” on SF 2417 because the Legislature can do better. This bill is a bad deal for most Iowans. It will raise property taxes on families, seniors and small businesses, and will mean even more cuts to health care, job creation, education and other critical services.
Senate Democrats came into the 2018 session promising to support tax reform that would:
• Make the tax system fairer for working families and small businesses.
• Make Iowa businesses more competitive.
• Take into account our current budget crisis.
• Tackle corporate tax giveaways, the fastest growing part of the state budget.
The tax plan passed on the last day of session failed every one of those tests.
According to the Iowa Fiscal Partnership, the “tax overhaul for Iowa means less revenue, greater inequity favoring the wealthy, while missing the mark on promised reforms for simplification and middle class.”
It overwhelmingly benefits the wealthy and special interests, while one-third of Iowans get nothing or end up paying more — more in property taxes, more in sales taxes, more in tuition at community colleges and state universities.
After several rounds of cuts to critical services and borrowing money to balance the state budget, this tax giveaway for millionaires, big corporations and non-Iowans all but guarantees everyday Iowans will continue to see cuts to the basic services Americans expect from their government — education, job creation, public safety and health care.
This tax plan could put Iowa on the same disastrous path as Kansas and Oklahoma, which failed to create jobs and increase family incomes.
Editor's note: Lykam, a Democrat, represents portions of Davenport in Iowa Senate.