Helland’s Highlights
On Friday, March 20th the Revenue Estimating Conference (REC) will meet to review the estimated amount of dollars Iowans pay to state government. This estimate is done quarterly by the REC, and the meeting on Friday, March 20 is the first of 2009. Early estimates show dollars coming from taxpayers to government are lower than last year. This is no surprise to anyone, as all families and businesses have had to tighten their budgets. Government will need to do the same this year also.
At this point it is unclear how the majority party leaders intend to close the roughly $800 million budget gap. Minority party leaders have offered to go through the budget and evaluate it line-by-line to get rid of wasteful spending. The majority party leaders have said they were going to discuss the budget openly, but have yet to accept any assistance from the minority party to help craft a responsible budget. I am concerned the majority party will put together a budget behind closed doors and not allow time for the public to weigh in on decisions.
Rumors continue to percolate on a potential repeal of federal deductibility. Federal deductibility may sound like a federal issue, but it is an important Iowa issue. This tax deduction allows Iowans to deduct their federal income tax payments on their Iowa income for tax form. For many Iowans, particularly those who rent their home and do not have a mortgage interest payment to deduct, this is their largest tax deduction. Any repeal of federal deductibility is a tax increase on all Iowans. I will be working hard to ensure this tax deduction is not lost and will continue to support lower taxes for all Iowans.
As always, I ask for your input on issues and concerns facing you, your family, and your business. You can reach me by email at erik.helland@legis.state.ia.us.
Sincerely,
Erik Helland