Taxes

Amy Mayer/IPR file photo

Now that the three-day partial federal government shutdown has ended, Iowa’s senior senator says it’s time to complete some unfinished business.

Republican Chuck Grassley says some 30 tax provisions that expired at the end of 2016 are top on his list, including one for biodiesel.

“Its lapse has created uncertainty for everyone from soybean farmers to biodiesel producers to truck stops,” Grassley says. “I’ve been strongly advocating for acting as soon as possible on extenders legislation that includes an extension of the biodiesel credit.”

John Pemble/IPR

Gov. Kim Reynolds delivered a 43-minute Condition of the State Address to a joint convention of the Iowa House and Senate Tuesday, the first ever by a woman in the state’s history.   She laid out her agenda for the upcoming legislative session, and took the bully pulpit on the issue of sexual harassment.   

Reynolds received an unusually long standing ovation….just for showing up.

“It's an honor to be here today as your 43rd governor and to deliver my first Condition of the State address,” Reynolds began.   

John Pemble / IPR

There was a spirit of optimism in the air as state lawmakers gaveled in the 2018 session. Opening day often brings talk of bipartisanship and cooperation, but that spirit never seems to last, especially in an election year.

Nevertheless, state Senator Pam Jochum, a Dubuque Democrat, struck a hopeful tone about the coming session, although her party is in the minority in a Senate controlled by Republicans 29 to 20. She says last session they made their voices heard.  

Joyce Russell/IPR

State lawmakers return to the capitol Monday for their 2018 legislative session.  Majority Republicans achieved many conservative priorities last year, including scaling back collective bargaining restricting abortions, and expanding gun rights. More Republican initiatives are on the agenda this year.     

At the December meeting of the Revenue Estimating Conference, once again, analysts revised downward their estimates of tax receipts flowing into state coffers.  

Gov. Reynolds’ top budget aide said once again it will be status quo spending at best next year.

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John Pemple/IPR file photo

Senate Judiciary Committee Chairman Chuck Grassley says he is not questioning the White House’s vetting of potential federal judges after three judicial nominees were recently rejected. 

Grassley says it’s not that the rejected nominees lack legal capabilities, rather, they "probably lack good judgment." 

"And you want judges that are going to have good judgment—more important, a better word would be judicial temperament, meaning they’re going to leave their own views out of cases," Grassley says. 

John Pemble / Iowa Public Radio

Iowa Republican U.S. Senator Chuck Grassley has been….in his words…..dropped from the conference committee charged with writing a final version of the giant tax cut bills which have passed the U.S. House and Senate.       

Grassley is the current senior ranking member and past chair of the Senate Finance Committee.    

Amy Mayer/IPR file photo

Progressive groups are protesting outside of Sen. Chuck Grassley’s Des Moines and Waterloo offices Tuesday evening because of a comment he made related to the estate tax.

Grassley told The Des Moines Register scaling back the estate tax would recognize people who are investing as opposed to "those that are just spending every darn penny they have, whether it’s on booze or women or movies." The comment went viral on social media.

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Jericho/Wikimedia Commons

Republican proposals to overhaul the federal tax code would give most Iowa households a tax cut next year, but the cuts would phase out for many by 2027.

Iowa Policy Project Executive Director Mike Owen says the middle class, on average, would get a tax cut in the next fiscal year.

"As time goes on, the much-advertised middle class aspects of this, which are a very small piece of the puzzle, are going to go away," Owen says. "And the big breaks will remain in place for very wealthy millionaire, billionaire families and for wealthy corporations."

Clay Masters / IPR

A terror attack in New York, new revelations about the Trump campaign's possible collusion with Russian officials, and a stalled plan for tax reform are all covered on this edition of Politics Day on River to River

Host Ben Kieffer talks with Wayne Moyer, Rosenfield Professor of Political Science at Grinnell College, and Tim Hagle, University of Iowa Associate Professor of Political Science. 

Hagle says that even though George Papadopoulos may have been an unimportant figure in the Trump campaign, his guilty plea does not look good for the Trump campaign. 

John Pemble/IPR

Iowa's U.S. Senator Joni Ernst says she’s hopeful lawmakers will pass legislation she says will help people facing steep premium increases for individual health insurance policies under the Affordable Care Act.

About 72-thousand people in Iowa face increases of nearly 60% after the state withdrew its proposal for a stopgap plan that would have provided relief. In this interview with River to River host Ben Kieffer, Ernst says the current situation puts a lot of Iowans in a bind.

Ben Terrett

Senate Minority Leader Chuck Schumer says it is difficult to govern with what he calls a president "zigging and zagging" on his support of bipartisan efforts to make changes to the Affordable Care Act. In this politics Wednesday edition of River to River, host Ben Kieffer is joined by professor of political science at Iowa State University, Jim McCormick.

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The Iowa economy is still growing, but not as robustly as predicted, and tax receipts for this budget year are off to a slow start.    

That’s the conclusion of members of the Iowa Revenue Estimating Conference,  who say unless things pick up, this year’s state budget of $7.3 billion will have to be trimmed by roughly $130 million.

Department of Management Director Dave Roederer says there are several drags on the economy.

Mike Mozart/flickr

Alternative nicotine products purchased online in Iowa are now subject to sales taxes for the first time under a new law that went into effect July 1st.  

Up to now, electronic cigarettes and vaping products could only legally be sold in Iowa stores and vending machines.     

Now online companies must acquire permits, restrict sales to those 18 or older, and collect state and local option sales taxes.  

So far only a handful of online sellers have acquired permits.

joni ernst
Katarina Sostaric / IPR

At a town hall Tuesday in Washington, Iowa, Sen. Joni Ernst took several questions about the so-far unsuccessful Republican efforts to repeal and replace the Affordable Care Act.

Some questioners asked Sen. Ernst to support "Medicare for all," while others said they want no government involvement in health insurance.

Ernst says bipartisan groups of lawmakers are working on healthcare solutions after "repeal and replace" legislation failed several times in the Senate this year.

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Christopher Dilts [Barack Obama / flickr]

An Iowa research group says manufacturing jobs continue to decline in the state, even after a new sales tax break was given to manufacturers. 

According to the Iowa Policy Project, a tax break that makes more manufacturing supplies exempt from state sales taxes has not led to more jobs in the manufacturing sector.

The statement comes after the Legislative Services Agency announced that tax break could cost the state about $100 million. It was originally expected to cost about $21 million. 

WIKICOMMONS / Holger.Ellgaard

The Iowa Attorney General’s Office says that for once, a caller claiming to be working on behalf of the Internal Revenue Service may not be a scammer, but instead a legitimate private debt contractor. 

Last month the IRS Private Debt Collection Program went into effect. Congress enacted the law in 2015, authorizing the federal agency to use private collections firms to call people who owe overdue taxes.

The debts targeted in this program are older, past-due balances the IRS is no longer actively seeking to collect.

Iowans will have to wait a bit longer to get their state tax refunds this year, as fraud prevention is creating delays.

The Earned Income Tax Credit is a prime target for criminals, so the federal government is taking more time to process tax returns. Victoria Daniels of the Iowa Department of Revenue says this affects state tax refunds as well.

Joyce Russell/IPR

A Republican-sponsored committee at the statehouse Monday got an earful from Iowa businesses and individuals who might be affected if the GOP succeeds in scaling back hundreds of millions of dollars in tax breaks.   

Both parties agree tax credits are one of the fasting-growing pieces of the state budget.  

The cost of one list of credits approaches half a billion  dollars, ranging from incentives for businesses to attract new jobs, to tax breaks for families who adopt kids, to credits for contributions to private school tuition.

Joyce Russell/IPR

Democrats and Republicans squared off in the Iowa House today over public financing of campaigns, as a GOP bill was approved to eliminate a limited form of the practice in Iowa. 

On a party line vote, the House Ways and Means Committee passed a bill to get rid of the checkoff on Iowa income tax forms that allows a contribution to the Republican or Democratic party or to a campaign fund that is then distributed to the major parties.

Joyce Russell/IPR

Amid pomp and circumstance and Republican celebration, the 87th  General Assembly of the Iowa Legislature convened in Des Moines today for the 2017 legislative session.   The new Republican majority promises significant conservative change on a number of fronts.      Minority Democrats say get ready for a fight. 

The house and Senate gaveled in nearly simultaneously at 10 a.m for a day dominated by traditional opening speeches expressing hopes of working together to get things done.     

John Pemble / IPR

State lawmakers opened the 2017 legislative session this morning as Republicans took control of both the House and Senate for the first time in 20 years. As lawmakers were sworn in and official business began, River to River Host Ben Kieffer and Statehouse Correspondent Joyce Russell sat down with legislative leaders from both parties to discuss priorities.

John Pemble/IPR

With Republicans now in control of the Iowa House and Senate and the governor’s office, the so-called trifecta, enthusiasm for cutting taxes is running high.   GOP leaders in both chambers have been telling groups around the state of their hopes and dreams for tax cuts.   But so far Governor Branstad is not on board.     

Manuel Alarcon/flickr

Iowans shopping at Amazon.com have a surprise in store when they go online today.  

Starting January 1, the retail giant will be collecting sales tax for the first time on purchases in Iowa, as they do in 30 other states.   

Department of Management Director Dave Roederer says it will be good for state coffers and for other retailers.

“It is leveling the playing field for the main street merchants,” Roederer said.  “Main Street merchants are required to collect sales tax.  The online was not.  So that levels that out.”

Joyce Russell/IPR

State lawmakers will have the tough job of cutting this year’s state budget when they convene in January, after new projections Monday from the Iowa Revenue Estimating Conference. 

The REC predicts that tax receipts will grow by 4.2 percent in the current fiscal year that ends June 30.

That’s $96 million less than earlier estimates.    

Department of Management Director Dave Roederer says to accommodate the shortfall, the governor will be recommending how to cut this year’s budget by roughly $100 million.

Joyce Russell/IPR

A top Republican in the Iowa legislature is calling for a comprehensive review of state tax policy, including cutting taxes, now that his party is in full control at the statehouse.   

House GOP leader Chris Hagenow (R-Windsor Heights)  answered questions at a meeting of the Iowa Taxpayers Association today.  

“I think we need a completely fresh look at tax policy in this state top to bottom and we're going to go through that,”  Hagenow said.  “Fundamentally, it’s 'are we going to find a way to reduce the tax burden  of Iowa taxpayers?'”  

Marco Antonio Coloma/flickr

A tax break Iowans enjoy on digitally-delivered goods is under consideration at the statehouse.

Officials with the Iowa Department of Revenue today briefed a panel of state lawmakers who are charged with reviewing the tax credits that cost the state treasury hundreds of millions of dollars a year.    

DOR economist Amy Harris said Iowans currently do not pay sales tax when they download e-books, movies, or software from the internet.   

Hudson Institute / Flickr

As a boy he lived in a refugee camp in his native Afghanistan. As a teenager he fled from the Taliban to England. Now, in his early thirties, Hamdullah Mohib serves as an ambassador to the U.S. from Afghanistan.

401kcalculator.org/flickr

Shoppers in parts of Warren and Taylor counties will be paying an extra penny of sales tax starting today.

In March, voters in several communities in Warren County approved the new one-cent tax known as the local option sales tax or LOST.

The vote covers portions of the cities of Des Moines and West Des Moines that reach into Warren County.   

Victoria Daniels at the Iowa Department of Revenue says the tax isn't in effect elsewhere in those larger communities.

FLICKR / 401(K) 2012

If you still haven’t completed your 2015 state income taxes, today is the filing deadline. If you're late filing, be prepared to pay a penalty of an extra ten-percent on top of whatever you owe.

"I will say that typically there is a very slight grace period," says Victoria Daniels of the Iowa Department of Revenue, "but I encourage people strongly to get their returns in and file them electronically and make their payments no later than 11:59 pm."

Flickr / 401(K) 2012

Though Monday is the deadline to file federal income tax returns, Iowans still have another two weeks before they must hand over their state income taxes. 

The Iowa Department of Revenue advises Iowans to file electronically, and depending on your income and veteran status there is software people can use for free.

"If you are going to get a refund, you will get it much quicker," says IDR spokeswoman Victoria Daniels. "A lot of the software programs, they actually do the calculations for you, and so you are less likely to have mistakes."

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