Republican gubernatorial candidate Bob Vander Plaats says he would get rid of most state tax credits and instead, cut the state’s corporate tax rate and reduce taxes on business and commercial property.
“We have tax incentives all over the place for special industries instead of saying: what could be done with that tax incentive money to reduce corporate income tax, to reduce business and industry property tax? Vander Plaats says. “That would be fairer to all industries and all businesses versus the State of Iowa picking winners and losers.”
A handful of state agencies administer 28 different tax credits and officials estimate individuals, businesses and corporations will claim about half a billion dollars worth of tax credits in the next year.
“One of my goals all along has been: how do we make our tax burden flatter, fairer, more predictable and more business-friendly?” Vander Plaats says. “And I think if you can apply those tax credits and those tax incentives to lower the corporate income tax rate in the state of Iowa and to reduce the business and industry property tax rate — now you’ve opened up Iowa for all business, not the government picking winners and losers.”
Vander Plaats says there’s no excuse for what’s happened in the state Film Office, where the office manager allegedly commited the state to millions of dollars in tax breaks for film makers without proper documentation.
“Here’s an example of a governor being asleep at the switch,” Vander Plaats says.
Earlier this week three other Republican gubernatorial candidates told Radio Iowa the mismanagement of the film office should be a “red flag” for voters, warning of Democratic Governor Chet Culver’s failings.
Governor Chet Culver says it’s time for a thorough review of all state tax credits, not just the tax credits for film makers which recently have come under scrutiny.
