February 9, 2012

Vilsack’s tax ideas get chilly reception, even from fellow Democrats

Governor Tom Vilsack’s call for a 60-cent increase in the cigarette tax and an expansion of the state sales tax so it’s charged on services like consulting and accounting isn’t even getting support from within his own party. Senate Democrat Leader Michael Gronstal of Council Bluffs says democrats in the legislature have a “fairly high resistance to increasing taxes.” Gronstal says Democrats have also opposed the “hidden” tax increases Republican legislators created by not providing enough money for property tax credits, thereby increasing propserty taxes. House Speaker Christopher Rants, a Republican from Sioux City, says the tax ideas Vilsack outlined today didn’t exactly get a rousing response. Rants says neither Republicans nor Democrats in the room applauded. Rants says it looks like Vilsack’s proposing about 300-MILLION dollars in new taxes. Rants says Vilsack hasn’t provided legislators with the details yet, but it sounded like Vilsack’s asking for more than 300-MILLION dollars in new spending. Senate President-elect Jeff Lamberti of Ankeny says raising taxes isn’t the answer to the state’s budget woes. Lamberti says he believes the people of Iowa want the state to live within its means. And Lamberti says the tax increases Vilsack outlined could be the largest in state history. Vilsack, meanwhile, is taking to the road this week with stops in several Iowa cities where he will make his case that the state needs a “financial bridge” in new taxes in order to meet spending priorities on education, health care and public safety.

Governor calls for "financial bridge" of tax increases

Governor Vilsack used his “Condition of the State” mesage to outline the “financial bridge” he wants legislators to build for the state, and that bridge includes tax increases. Vilsack’s calling for raising the state cigarette tax by 60 cents per pack, closing loopholes in business taxes, and making more services subject to the state sales tax. Today, most state sales tax revenue comes from the sale of goods and products. Vilsack says that’s 20th Century thinking. He says we now have a service based economy and taxes should be charged on engineering, consulting and other services. Vilsack says by expanding the sales tax to more services, the state can then gradually reduce the over-all sales tax rate. Vilsack said some would pay more under his plan, but he argued most would pay less , over time, and the extra money raised would be used on the state’s schools. “All will benefit as Iowa remains an education leader,” Vilsack said. The Governor began his “Condition of the State” speech by recognizing the Iowans who are serving our country in the military. He specifically mentioned those who were injured or killed in the last year. “The efforts of these unsung heroes should inspire and motivate us to follow their example by making a difference with the opportunities we have been blessed to receive,” Vilsack said..”In the face of such supreme and extraordinary sacrifice, a reciprocal duty and responsibility arised in each of us. We, too, are called to a life of service and sacrifice.”

Iowa begins road stretch against Gophers

The Iowa Hawkeyes play their next three games on the road beginning with tonight’s visit to Minnesota. Iowa is 1-1 in the Big Ten after Saturday’s loss at home to Northwestern and must find a way to slow down Gopher freshman forward Kris Humphries who is averaging just over 23-points per game. Iowa coach Steve Alford says Humphries is explosive and shoots the three, and can also rebound. the Gophers will vary their defense. In presses, zone and man. Alford says they’ve had problems recognizing and adjusting to defensive changes.Like Alford, Minnesota coach Dan Monson has been frustrated by inconsistent play. The Gophers are 8-5 he says they haven’t played very consistent.Iowa is 8-4 overall.

Drake women down Illinois State

In women’s basketball action from last night, Drake jumped out to a 43-29 halftime advantage, the held off several Illinois State rallies in the second half enroute to a 73-60 Missouri Valley Conference win in Des Moines.Drake coach Amy Stephens says they came out flat to start the second half and they have to continue working on consistency starting the game. The Bulldogs continue their improved play and moved to 3-1 in the Valley.

ISU overcomes slow start to get win

Iowa State overcame a sluggish first half to cruise past Northern Colorado 89-63 in non-conference action last night in Ames. Northern Colorado made seven of ten three pointers in the opening half and trailed by just seven at the break.Coach Wayne Morgan on the post-game show on the Cyclone Network said they have to do a better job on defense to disrupt shots. Northern Colorado made just nine of 30 shots in the second half as Morgan was able to empty his bench and give some of the walk-ons a chance to play. He says he’s been coaching a long time and has never been around a better bunch of walk-ons.I-S-U improves to 10-2.

Study looks at connection between birds and beef

You’ve no doubt heard about the “Birds and the Bees.” A study at Iowa State University looked at the “Birds and the Beef.” I-S-U Extension wildlife specialist Jim Pease says they studied ways to rotate pasture use by cattle to improve the habitat for birds. Pease says they know that cattle tramping through pastures don’t benefit birds. He says you generally get low bird production and usage by birds, as there’s a lot of trampling of the ground nests the birds produce. Pease says they studied a rotation that moved the cattle where warm weather grasses flourished in the summer, and then moved them to where cool weather grasses grew better in cool conditions. Pease says the birds took notice when the cattle were present.He says they quickly left when the cattle were moved in, but were able to use them effectively after the cattle were rotated out. He says both cool-season and warm-season grass pastures attracted birds. He says they found some 36 species of birds using the pastures. Pease says one of the biggest factors in making the rotation work is good fencing, and water. He says they hope to expand the study this year in an area where they can test the viability of piping in water.He says they want to do that to be able to have a variety of paddocks on areas that had open grazing before. Pease says the initial study shows that birds and beef can co-exist with a little planning by farmers.

Lawsuit over cattle gets underway

A lawsuit got underway Monday that’s been almost a decade in the making, and could affect hundreds of Iowa cattle farmers. Jury selection began in a challenge to big packing companies that contract with farmers for livestock long before it goes to market. Steve Cady, director of the Organization for Competitive Markets, says “Pickett versus IBP” began in 1994.He names farmers from Kansas, Montana and Nebraska who joined the suit saying the packers use “captive supplies,” contracted or “formula” cattle to manipulate the prices paid to cattlemen. The issue’s packer control of livestock, which has grown in urgency over the years as the business practice becomes more pervasive.The suit contains a monetary claim that would demand damages over two-Billion dollars. But the main request is for injunctive relief, so if the plaintiffs win, the judge will tell IBP — or Tyson Foods, which bought it, to quit such price-controlling tactics. Two other suits now included in this one are Murdoch vs. Excel and Leuking vs. ConAgra, so this tackles the three biggest packers and would include them all in any “injunctive relief” — and Cady says the nation’s four biggest packers control 82-percent of the cattle market. Opening statements are expected today (Tuesday) in the trial, which is being conducted in Alabama.