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"Fiscally Prudent" Taxpayer-Financed Corporate Welfare

State 29

Thursday, April 28, 2005



According to the Quad City Times, the Iowa House voted 92-8 to re-establish the Iowa Taxpayer-Financed Corporate Welfare Values Fund:
Iowa House Speaker Christopher Rants, R-Sioux City, said the House proposal is “fiscally prudent” and said Democrats have offered no viable proposal to pay for their plan.

The House plan would invest $50 million a year for 10 years on economic development efforts. Another $21 million a year would be extended in tax credits each year, with $13.6 million of those credits set aside for employers that create new jobs.

Dotzler said it’s simply not enough money to keep Iowa in the game. Out of $71 million put into effort each year, only about $10 million is left to lure new businesses startups, while other states are spending far more, he said.

Senate Democratic Leader Mike Gronstal of Council Bluffs said he is working with GOP leaders in the Senate to find an alternative funding plan which could include bonding.

Lawmakers were faced with the task of reinstating the Iowa Values Fund after a court ruling dismantled it last year. At that time, the program already had promised $56 million to 36 firms locating or expanding in the state.

You've gotta luv that Rants spinning taxpayer-funded corporate welfare as "fiscally prudent" - what a schmo.

And Gronstal is even more durst, wanting to bond out future generations to permanent debtsville. Loser.

Related: Past Iowa Values Fund mentions [http://www.google.com/search?q=iowa+values+fund&ie=UTF-8&sitesearch=state29.blogspot.com&x=0&y=0]

Update: The Tax Update Blog [Roth & Company, P.C., http://www.rothcpa.com/archives/000984.php#000984] has more details.

Noon Update: The bill was HF 868. My fave Guv candidate Ed Fallon was among the 8 who voted against this thing (PDF).

posted by Editor at 9:34 AM