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Tax Foundation recommends simplifying Iowa’s tax system

News

May 6th, 2016 by Ric Hanson

A new report from the Washington, D.C.-based Tax Foundation is outlining “significant, structural reforms” to simplify Iowa’s tax system. First, Iowa’s income taxes LOOK higher than they actually ARE because of a rare tax deduction. Iowans get to deduct how much they’ve paid in FEDERAL taxes before calculating their STATE income taxes.

Jared Walczak, with the Tax Foundation, says “On paper, Iowa looks like it actually has some of the highest taxes you could possibly face in the country and that’s a competitive disadvantage” Getting rid of that deduction is the top recommendation in his report. Iowa’s income tax system has nine tax brackets, too. The Tax Foundation outlines a few alternatives, including one “flat” rate of five-point-eight percent for all taxpayers. In addition, the foundation’s report suggests Iowa’s property tax system should be dramatically simplified.

“Taxes in Iowa are too complex,” Walczak says. “On the property tax, very few people have a good sense of what they will be paying from year-to-year. On the individual income tax, no one really understand what the effective rates that they’re subjected to are. Complexity has its own costs.” The report outlines “revenue neutral” proposals, meaning the same amount of taxes would be collected by the State of Iowa after the proposed changes. Walczak says that’s different from the approach used in Kansas.

Lawmakers in Kansas dramatically reduced taxes altogether without making similar reductions in state spending and they’ve been grappling with deficits ever since. “Good tax reform is neutral,” Walczak says.”It’s also simple and transparent.” Walczak’s report was commissioned by The Future of Iowa Foundation, a sister organization of the Iowa Taxpayers Foundation. Jeff Smith — the president and C-E-O of the Iowa Taxpayers Foundation — says the report provides the research “legwork” and outlines a “menu of options” for legislator.

“Our first objective is what can we do structurally that will help our tax code become simpler and more fair, that doesn’t have a fiscal impact,” Smith says. The group analyzed all the taxes the state collects, including sales taxes. It recommends ending current exemptions for a long list of goods and services. For example, you pay sales taxes when you buy a television, but not an airplane in Iowa. Walczak says there’s “no good economic reason” to exclude airplanes from the state sales tax.

(Radio Iowa)

Nearly 19 percent drop in state tax collection in April

News

May 6th, 2016 by Ric Hanson

State tax collections were down dramatically in April, by almost 19 percent. Jeff Robinson of the Legislative Services Agency says since April ended on a weekend, that decline is exaggerated a bit, but state tax receipts are still lagging below expectations. “All three main tax revenue sources — individual income tax, corporate income tax and sales tax — were negative for April,” Robinson says.

Overall state tax collections for the past 10 months are running one-point-two percent ahead of the same period a year ago. It’s about 70 million dollars LESS than the experts had predicted. “The main source of revenue weakness the past three months has been tax payments made when individual income tax returns are filed,” Robinson says.

Iowans paid 148-million dollars in state income tax in February, March and April as they submitted their returns. That’s the lowest amount of income taxes paid during that period since 2007. More than 40 percent of income tax returns will be paid and processed in May, however. Robinson says that means the state’s tax revenue picture might improve this month.

(Radio Iowa)

Many Iowa farm fields flooded

Ag/Outdoor, News

May 6th, 2016 by Ric Hanson

More than half of the state’s corn crop has been planted, but some Iowa farmers are waiting to see if they’ll be forced to do some replanting. Paul Kassel is Iowa State University Extension Crops Specialist for northwest Iowa. A large part of my area is really wet,” Kassel says. His area includes Clay, Dickinson, and Buena Vista Counties – where several fields remain under water after heavy rains last week. There’s a chance recently planted corn will survive.

“There’s a possibly with corn planted a week ago, it was cool enough that maybe it didn’t germinate and it will withstand the flooded conditions,” Kassel says. The bigger concern is with the corn planted two to three weeks ago. “If that’s under water very long, that will suffocate and die. There will be some (plants) that miraculously survive and there will be some that should survive but won’t,” Kassel says.

Farmers are going to be busy, at an already very busy time of year, finishing their corn, starting their beans, and then evaluating what they’ve already planted. Monday’s USDA crop report listed 57 percent of Iowa corn crop planted, eight days ahead of the five-year average. Seven-percent of Iowa’s soybean crop was in the ground, five days ahead of the five-year average.

(Radio Iowa)

Iowa early News Headlines: Friday, May 6th, 2016

News

May 6th, 2016 by Ric Hanson

Here is the latest Iowa news from The Associated Press at 3:40 a.m. CDT

DES MOINES, Iowa (AP) — A Des Moines woman, sentenced to 20 years in prison in 2007 for conspiracy to distribute methamphetamine has had her sentence cut shorter by President Barack Obama. Tomma Jean Kent is among the 58 federal prison inmates receiving presidential commutations on Thursday.

WEVER, Iowa (AP) — The company constructing a $1.9 billion fertilizer plant in southeast Iowa says the project has been delayed due to “defective work” by a Louisiana-based contractor. Orascom E&C USA claims Maintenance Enterprises didn’t employ enough workers, repeatedly raised costs and failed to meet deadlines while working on the Iowa Fertilizer Co. plant, in Wever. The claims were filed April 29 in response to a lawsuit filed in February by Maintenance, of White Castle, Louisiana.

DES MOINES, Iowa (AP) — Three campaign advisers to 2012 presidential candidate Ron Paul were convicted in a federal case alleging they conspired to cover up the campaign’s payments to a former Iowa state senator who had agreed to endorse their boss. Prosecutors said it is illegal to cause a campaign to file inaccurate spending documents. They’ve pursued charges since July 2015 when a grand jury first indicted the men.

SALINA, Kan. (AP) — A Western Illinois University official will be the new president of The Land Institute in Salina. The institute announced Thursday that the new president will be Fred Iutzi, the manager of agriculture, energy and cooperative development programs for the Illinois Institute of Rural Affairs at Western Illinois. His appointment is effective Oct. 1. Iutzi will replace Wes Jackson, who co-founded the institute 40 years ago.

Missing relatives of Atlantic boy located

News

May 5th, 2016 by Ric Hanson

Officials with the Atlantic Police Department said (at 10:10-p.m.,) relatives of child found wandering at around 8:30-p.m. near 7th and Cedar, have been found and have spoken with Police. The matter is being handled accordingly. Authorities thank everyone who called them and provided, and/or posted on social media, information as to the parents of the 4-to 5-year old child.

(Update w/picture) Atlantic P-D looking for parents of a wandering child

News

May 5th, 2016 by Ric Hanson

(Please note: The A-PD announced at around 10-p.m. Thursday they had spoken with the childs’ relatives (an aunt and uncle)…the situation is being handled. THANK YOU ALL for your help! – Ric Hanson/KJAN News)

Officials with the Atlantic Police Department are looking for the parents of a child found wandering alone in the area of 7th and Cedar Streets, this evening, at around 8:30-p.m.. The Caucasian male is about 4-to 5-years of age, and was wearing a green, black and white, striped shirt. Authorities have been unable to locate the childs’ parents. If you have any information on their location, or know who the child belongs to, call the Atlantic Police Department, at 243-3512.

This is the child officers found wandering in Atlantic. Call the A-PD if you know his parents or where they are, 243-3512.

This is the child officers found wandering in Atlantic. Call the A-PD if you know his parents or where they are, 243-3512.

Urgent: Atlantic P-D looking for parents of a wandering child

News

May 5th, 2016 by Ric Hanson

(Please note: The A-PD announced at around 10-p.m. Thursday they had spoken with the childs’ relatives (an aunt and uncle)…the situation is being handled. THANK YOU ALL for your help! – Ric Hanson/KJAN News)

Officials with the Atlantic Police Department are looking for the parents of a child found wandering alone in the area of 7th and Cedar Streets, this evening. The Caucasian male is about 4-to 5-years of age, and was wearing a green, black and white, striped shirt. Authorities have been unable to locate the childs’ parents. If you have any information on their location, or know who the child belongs to, call the Atlantic Police Department, at 243-3512.

Driving suspension arrest in Red Oak

News

May 5th, 2016 by admin

The Red Oak Police Department arrested a Red Oak man for Driving While Suspended on Thursday.  At 4:47pm Officers arrested 52-year-old Robert Wade Abraham of Red Oak at the intersection of 4th and Prospect Streets in Red Oak.  Abraham was taken to the Montgomery County Jail and held on $300 bond.

Adams County assault arrest

News

May 5th, 2016 by admin

Adams County Sheriff’s Officials responded to a report of an assault taking place at 3:20pm Thursday afternoon.  Upon further investigation Deputies arrested John Fister of Corning and charged him with Assault causing bodily injury.  Fister was taken to the Adams County Jail and held on $1,000 cash bond.

Council Bluffs to provide more arena access for disabled

News

May 5th, 2016 by Ric Hanson

COUNCIL BLUFFS, Iowa (AP) — The U.S. Justice Department has reached a settlement with Council Bluffs stemming from allegations a 9,000-seat arena did not provide proper access for those with disabilities. The department announced Thursday that the city of Council Bluffs must provide at least 56 wheelchair and companion seats throughout the Mid-America Center, an arena that hosts events including concerts, basketball and hockey games.

Companion seats don’t have an arm rest, or include removable arm rests, for those who assist people in wheelchairs. Under the agreement, the city must also revise its pricing policy to ensure that people with disabilities have equal access to buy tickets for those seats.

The Americans with Disabilities Act requires wheelchair seating locations be an integral part of seating plans in newly constructed arenas, which includes the Mid-America Center.