For the second time this year Republican Governor Terry Branstad has rejected a tax cut proposed by Democrats. 

Branstad surprised legislators of both parties the first time he rejected the tax break geared toward low-income Iowans. The tax cut would have been accomplished by increasing the “Earned Income Tax Credit”. It was included in the final compromise package which cleared the legislature in late June.

Today Branstad issued a veto message, saying the proposed change was unacceptable, in part, because it would reduce tax revenue to the state by $28.5 million over the next two years.  Branstad also said he preferred tax breaks that would bring “new business and jobs” to the state — meaning the tax cut he has been seeking for commercial property owners.

Branstad also used his item veto authority to ax another proposal from the legislature that would have banned bonus pay for state employees. Branstad said that would “unduly limit” his authority to “reward exceptional employees.”