"DISCOUNTING" IOWA'S TAXES: YOUR BLUEPRINT FOR PROSPERITY
 
 BY: KEVIN MCLAUGHLIN
 
 THE TERM "DISCOUNT" IS GENERALLY INTERPRETED BY AMERICANS TO MEAN
 "SOMETHING FOR ME."  JUST AS IMPORTANTLY, EVERY AMERICAN BELIEVES THAT
 EVERY OTHER AMERICAN IS ENTITLED TO A DISCOUNT ON EVERY IMAGINABLE
 PRODUCT, OR SERVICE.  SO, INSTEAD OF A "FLAT TAX," (REMEMBER STEVE FORBES'
 EXPERIENCE), OR A "SINGLE RATE," (JACK KEMP CAN TELL YOU WHAT THEY DID TO
 HIM IN 1996 WHEN HE CHAIRED THE NATIONAL COMMISSION ON ECONOMIC GROWTH &  TAX REFORM), WHICH ARE MUCH MORE EASILY POLITICIZED, "DISCOUNTING" AVOIDS  THE RICH VERSUS POOR ARGUMENT THAT ALWAYS DESTROYS THE OPPORTUNITY WE HAVE  TO COMPETE FOR THE RESIDENTS AND BUSINESSES IN OUR NEIGHBORING STATES.  AND THAT'S ALL THAT THIS IS REALLY ABOUT: COMPETING SO WE CAN GROW OUR ECONOMY WHILE WE SUCCESSFULLY ADDRESS THE STATE'S REVENUE PROBLEM.
 
 AND LET ANYONE WHO OPPOSES DISCOUNTING TRY TO EXPLAIN TO HIS, OR HER
 CONSTITUENTS WHY THEY ARE NOT ENTITLED TO A DISCOUNT. 
 
 AS A VIVID EXAMPLE OF DISCOUNTING, THINK OF WAL-MART AS A STATE INSTEAD OF
 A STORE.  THEN IMAGINE YOURSELF BEING STOPPED AT THE CHECKOUT COUNTER
 BECAUSE YOU WERE ATTEMPTING TO PURCHASE TOOTHPASTE FOR THE SAME PRICE AS THE PERSON AHEAD OF YOU, WHO HAPPENED TO BE UNEMPLOYED.  IF WAL-MART TRIED  TO CHARGE YOU MORE, YOU'D STORM OUT OF THE STORE AND TAKE YOUR BUSINESS  SOMEPLACE WHERE THEY TREATED YOU BETTER.  AND YOU'D BE RIGHT AND FREE TO DO SO.
 
 WELL, AS MANY OF YOU ALREADY AGREE, THIS IS EXACTLY WHAT IOWA'S BEEN DOING WITH ITS TAX CODE.  AND, VERY PREDICTABLY,  A LOT OF PEOPLE HAVE BEEN
 LEAVING WITH THEIR FAMILIES AND THEIR BUSINESSES, OR REFUSING TO LOCATE
 HERE IN THE FIRST PLACE.

                           
 NOW, TAKE THE WAL-MART EXAMPLE AN IMPORTANT STEP FURTHER.  IMAGINE THAT
 IOWA IS A STORE INSTEAD OF A STATE, AND THAT WE HAVE TO COMPETE AGAINST 49
 OTHER STORES IN THE COUNTRY FOR THE PEOPLE AND THE BUSINESSES THAT ARE
 AVAILABLE.  AS THE SITUATION STANDS NOW, THE OPPORTUNITY IS RIPE FOR IOWA
 TO BECOME THE FIRST DISCOUNTER.  AND, AS HISTORY HAS SHOWN SO MANY TIMES,
 THE FIRST TO DISCOUNT GETS THE BIGGEST RETURN FOR THE EFFORT, BY FAR.
 
 AS EXAMPLES OF THE PROBLEMS OTHER STATES CURRENTLY FACE, THE
 GOVERNORS-ELECT FOR THE STATES OF SOUTH CAROLINA AND ARIZONA WERE
 INTERVIEWED ON ABC'S "THIS WEEK" ON SUNDAY, DECEMBER 29, 2002.  THEY ARE
 FACING DEFICITS OF $1 BILLION AND $1.3 BILLION, RESPECTIVELY, AND ARE
 LOOKING AT TYPICAL SOLUTIONS IN SPITE OF THE FACT THAT THEIR CIRCUMSTANCES  ARE DRAMATICALLY DIFFERENT.  SOUTH CAROLINA IS ON A COAST AND STEEPED IN  SOUTHERN TRADITION WHILE ARIZONA BORDERS MEXICO AND HAS "FIVE HUNDRED  THOUSAND" ILLEGAL ALIENS IN ITS CITIES.  BUT BOTH ARE LOOKING FOR WAYS TO  CUT EXPENSES AND RAISE TAXES.  NEITHER ONE EVEN MENTIONED "DISCOUNTING" AS  A MEANS OF GENERATING MORE TAX REVENUE AND SPURRING ECONOMIC GROWTH.
 
 LET'S GO BACK TO THE WAL-MART MODEL ONE MORE TIME.  IF YOU WANT MORE OF
 SOMETHING, (IN THEIR CASE MORE REVENUE AND PROFIT BY SELLING MORE
 INVENTORY), THEN YOU DROP YOUR PRICES.  YOU DON'T RAISE THEM.  AND
 WAL-MART INCREASED ITS SALES BECAUSE SHOPPERS RESPONDED FOR TWO IMPORTANT  REASONS.  FIRST, PEOPLE CAME TO THEIR STORE BECAUSE THEY WANTED WAL-MART'S  PRODUCTS AT THE LOWER PRICES.  BUT THEY ALSO CAME TO AVOID THE COMING  PRICE INCREASES AT THEIR OLD STORE.  AND THAT BRINGS US BACK TO IOWA'S  OPPORTUNITY AND YOUR BLUEPRINT FOR PROSPERITY.
 
IF WE "DISCOUNT" THE SERVICES THAT IOWA OFFERS RIGHT NOW, PEOPLE WILL MOVE THEIR FAMILIES AND BUSINESSES HERE TO TAKE ADVANTAGE OF OUR DISCOUNTED TAXES.  BUT THEY WILL ALSO BE MOVING TO AVOID THE COMING TAX INCREASES IN NEIGHBORING STATES.  REMEMBER THAT NEBRASKA ALREADY PASSED A TAX BILL LAST YEAR OVER THEIR GOVERNOR'S VETO.

 IN CONCLUSION, DISCOUNTING IOWA'S TAXES SHOULD BE AN OPTION FOR BOTH
 INDIVIDUALS AND BUSINESSES.  EVERYONE SHOULD BE ABLE TO CALCULATE THEIR
 TAXES WITH ALL THEIR DEDUCTIONS AND ON THE BASIS OF THEIR NEW DISCOUNT.
 THEN YOU WOULD BE FREE TO FILE ON WHICHEVER BASIS PUT THE MOST MONEY IN
 YOUR POCKET, IMMEDIATELY. 
 
 IF WE COPY THE AUTO INDUSTRY'S MARKETING SUCCESS, WE CAN ADVERTISE A
 DISCOUNTED RATE ON YOUR EARNED INCOME OF, SAY, 1.5-2.0% WITH  0% TAX ON
 INTEREST INCOME,  0% TAX ON DIVIDEND INCOME,  0% ON PENSION INCOME AND
 SOCIAL SECURITY, AND , JUST LIKE BILL CLINTON DID FOR HOME OWNERS,  0% ON
ALL CAPITAL GAINS. 

 THIS APPROACH WILL INGNITE IOWA'S ENGINE OF ECONOMIC GROWTH, PUT MORE
 MONEY IN YOUR POCKET IMMEDITELY, AND CAUSE YOUR PROPERTY VALUES TO RISE
OVER THE LONG-TERM.  WE KNOW THIS TO BE THE CASE BECAUSE WE'VE SEEN WHAT
 "DISCOUNTED" TAXES DID FOR GERMANY, JAPAN AND HONG KONG AFTER WORLD WAR II, AND IN KOREA, IRELAND, AND NOW EVEN IN RUSSIA, MORE RECENTLY.

 DISCOUNTING CAN PUT MORE MONEY IN YOUR POCKET AND SOLVE IOWA'S REVENUE
 PROBLEM.  BUT WE HAVE TO WORK TOGETHER AND WE HAVE TO BEGIN RIGHT NOW.
FORGET ABOUT BEING A DEMOCRAT, OR A REPUBLICAN ON THIS ISSUE. SIMPLY:BE AN
 IOWAN TODAY!