imageBy State Senator Kent Sorenson

Year after year, Iowa ranks as one of the least friendly states in the nation to conduct business in, according to the Small Business Survival Index.  While Iowa’s business climate seemed to improve in 2010, Iowa still ranked at the very low end of the list.  Only nine other states and the District of Columbia were found to have a worse business climate. 

And while Iowa scores some points for having a low number of health insurance mandates (6th lowest), low crime rate (10th), low electric utility costs (11th), and low gas tax rate (18th), Iowa doesn’t fare so well when it comes to corporate income tax rates, corporate capital gains tax rates, and adjusted unemployment tax rates.

Iowa ranks 49th for corporate income tax rates and 49th for corporate capital gains tax rates.  Only the District of Columbia and the state of Pennsylvania have higher rates!

In figuring adjusted unemployment taxes, the index takes the maximum state tax rate and applies it to the state wage base and then takes that as a share of state average pay.  In this category, Iowa ranks 48th, beating out only Minnesota, Utah, and North Dakota.

The reason I bring up all this dismal data is to tell you again what I told you in my campaign – I won’t vote for new taxes, and I know that improving Iowa’s business climate is crucial to attracting and growing businesses in this state and putting Iowans back to work.

But one man in the senate won’t let us do that.

You see, Senate Majority Leader Mike Gronstal has the power of controlling the committees that new legislation must go through. As such, he can either have a committee kill that legislation or bring it to the floor for a vote. There are a lot of good bills that have been introduced this session that are aimed directly at getting Iowa back on track.

But Gronstal stalls.

And he can do it, too. You know why? Because he decided right after the start of the legislative session that he’d change the 40 year old senate rules to remove the language that allows a senator like me to force legislation to the floor.

I bet you can imagine how I feel about that.

I call it tyranny, plain and simple.

Improving Iowa’s business climate is crucial to attracting and growing businesses in the state and putting Iowans back to work.  I remain dedicated to helping reform our tax structure and identifying and removing unnecessary government rules and regulations to improve Iowa’s business climate and begin putting Iowans back to work.

If Senate Majority Leader Mike Gronstal doesn’t like what you have to say, he can stop it dead in its tracks.

State Senator Kent Sorenson (R-Indianola) represents Iowa Senate District 37 which encompasses Madison, Warren, and Southern Dallas Counties.

1 comment
  1. the reason why Iowa isn’t a business friendly state goes far beyond anything that has to do with high taxes. Businesses don’t want to come to Iowa for many reasons. It doesn’t have a coastline, it doesn’t have any scenery, it doesn’t have any world class cities, no mountains etc. Another issue is that Iowa isn’t near the border, so many immigrants don’t have Iowa as their first choice for relocation

    Look at all the states with fast growing populations

    Arizona – has scenery (deserts, forests, mountains) and is on the border

    Texas – has a coastline and is on the border

    Florida – has a coastline

    Georgia – has coastline (although not much of one), and doesn’t have much scenery but it has a world-class city of Atlanta with a lot of culture. Atlanta is quickly becoming the capital of black america as many middle and upper income blacks are moving there

    South Carolina – has a coastline

    Utah – has mountains and although probably the reason they are gaining a seat is not because of people moving in but because of high reproduction rates

    Nevada – has mountains and desert, plus Las Vegas which is an exciting city with casinos and a fast-living lifestyle.

    Washington – has mountains and forests and a coastline. Also, it has Seattle which is very high-tech with the computer industry being big there and Starbucks is a big employer there too. Also, Seattle is a very cultural city with a wide variety of society living there making it attractive for everyone to move there.

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