Lawmaker says lawsuit likely over tax cut and development fund

Senate Democrat Leader Michael Gronstal predicts there’ll be a lawsuit regardless of whether the Governor signs or vetoes the two bills which would create a new state economic development fund, cut income taxes and change business regulations. Gronstal says it’s hard to predict what Vilsack will do, but Gronstal feels certain there will be some item vetoes, if not an all-encompassing veto of the policy bill.Gronstal wants Vilsack to sign the appropriations bill so the state would have the economic development money but veto the other bill that includes the tax and business policy changes. Gronstal says if Vilsack signs the bills into law, the state will likely be sued by trial lawyers and unions who object to the regulatory changes in the bill. If Vilsack item vetoes portions of the policy bill and knocks out the tax cut, Gronstal predicts Iowans for Tax Relief and other groups will sue. Gronstal made his comments on Iowa Public Television.