A University of Iowa professor says the income tax cuts proposed by Republicans in the Senate won’t persuade businesses to build in Iowa. Peter Fisher, who is also the research director for the Iowa Policy Project, says he’s been studying the effects taxes have on business investment for years, and he disputes the Republicans’ argument that cutting the income taxes paid by individuals will spur economic growth.Fisher says he’s found cutting the taxes business pay has very little effect on business decisions, and the tax cut that’s being proposed isn’t even paid by businesses, it’s paid by individuals. Fisher says the only way individual income taxes becomes a business expensive is if a business has to pay higher wages because of the tax. He says that would still be a tiny share of business expenses, and Fisher says he finds it hard to believe that would help determine any business expansion or location decisions.Fisher says businesses pay more attention to transportation costs, utility costs, the quality of the workforce and local infrastructure, things like roads and sewers.Fisher says a comparison of how those expenses vary from state to state are going to overwhelm the differences on individual income taxes. Republican Senators say Iowa’s personal income taxes are too high compared to other states, and they insist a 300-MILLION dollar income tax cut and simplification package be part of the special session agenda later this month, in addition to the economic development fund Governor Vilsack is insisting upon.
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