Phil Seibert Ok I see yoru a Dem but runnign on lowering taxes on commercial property is that correct?46 minutes ago ·- Mikey ConnollyIt is correct. I'm not a knee jerk tax cutter in all circumstances, but we need to make sure there are jobs for the several thousand Soldiers from Iowa who just came back from Afghanistan. Businesses are facing unsteady demand (which we can...See More9 minutes ago ·
- Mikey Connolly Cutting their income tax is ineffective, as they can just move their base of operations overseas, or to another state. This is the only bullet in our gun to help lower unemployment in Iowa even further, which is the most important objective.7 minutes ago ·
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Phil SeibertMikey as vets trickle back to Iowa we will absorb them into our communities. Passing the commercial tax debt to the citizens is not the right thing to do. Teaxes on commercial properties is the fairest way to tax. That way all pay equally. ...See More5 minutes ago ·
- Mikey Connolly Go to http://
connollyforiowa.blogspot.co m/ to finish the conversation. I'll answer your questions there, because I have answers for them. But I really think your asking good questions that are shared by a lot of people. See you there! 2 minutes ago · ·
Thursday, January 19, 2012
Why would a Democrat want to cut commercial property taxes?
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I really want to thank Phil Seibert for his questions, first and foremost.
ReplyDeleteFirst of all, I will not support any plan that cuts commercial property taxes, and simply moves that burden over to residential taxes. I'll go into that more if someone wants me to, but I really think that's a ridiculous "solution". Talk about corporate welfare.
Phil says as veterans trickle back into the local economy, we'll absorb them. True, especially since Iowa has one of the lower unemployment rates in the nation.
However, there is an entire Brigade Combat Team of the Iowa National Guard that just came back from Afghanistan. All at once. I know that because I served with that unit. When I was in combat the first tour in Iraq (with the Maryland National Guard) it was this unit from the IA National Guard that relieved us and took over.
They then had their deployment extended by at least 6 months (34th INF Division for those that want to look it up). They didn't get much time back home before this most recent tour, where they had a particularly tough bout in Afghanistan this time.
So especially for a state like Iowa, 4,000 people coming back all at once is a lot to absorb.
Phil mentioned the "cost of doing business", which is an excellent point. Businesses pass costs onto consumers. But there's a limit to how much the market is willing to absorb price increases.
ReplyDeleteIf the price of a loaf of bread rose 30 cents, we would all probably still buy that bread. If the price rose 30 dollars, we wouldn't. We would look for alternatives.
As a business owner, you have two forces working against you, affecting your decision of how much labor you need: the amount of demand for your product, and the costs you know and can take into account.
By cutting the costs the business owner knows they will face (like commercial property taxes), they can sell their goods for cheaper. More people will then want those goods. Now the business owner needs more labor to meet that increased demand.
That's the closest we can come to forcing unemployment to go lower. We can't force businesses to hire more labor, we can only do our best to create conditions that favor hiring activity.
Finally, I mentioned a hypothetical bread company. A bread company can't absorb and pass on a lot of cost to the consumer, they have too small of profit margins.
ReplyDeleteBut casinos can. Governor Branstad's budget would increase the casino tax to 36% to offset a lot of the commercial property tax reduction. I'm not in favor of "soaking" any individual or corporation, but I don't think 36% is too much to ask of casinos. I don't like increasing anyone's taxes, but that proposal doesn't seem too out of line.
I have other problems with Gov. Branstad's budget, but if this is how we avoid cutting commercial property tax and shifting that burden to residential taxes, then I can support it.
But I can't support not doing everything in our power to make sure veterans that comes back from war have a job to come back to. That, and reforming the VA system in Iowa, are the two biggest reasons I'm running for State Representative.
What is the current casino tax?
ReplyDelete