(Des Moines, IA) Americans for Prosperity-Iowa announced it would be continuing efforts to eliminate the state’s corporate income tax after a model created by the Massachusetts based Tuerck Foundation demonstrated that eliminating the state’s corporate income tax would create almost 3,000 jobs and increase investment by nearly $1 billion.
Americans for Prosperity-Iowa state director Drew Klein released the following statement:
“Keeping Iowa economically competitive means keeping up with the times. States around Iowa are improving their tax climate putting us at risk of losing business and shrinking our economy. Firms will leave Iowa in search of better tax environments if we don’t address the issue. The bottom line is we can’t continue down this path and expect our economy to grow.”
The Trueck Foundation report also noted that a cut in the corporate income tax would increase revenue for state and local government while modestly increasing personal income tax revenue. This is because an increase in real disposable income for Iowans of $500 million could stimulate the economy and increase revenue from other sources.
To read the full report by the Tuerck Foundation, click here.
Americans for Prosperity has participated in ongoing efforts to eliminate the corporate income tax through grassroots activism. The group is currently working with activists to knock on doors and take to the phones to educate citizens about the issue and other problems with Iowa’s corporate income tax.
Currently Iowa gives out as much a $350 million a year in tax cuts and subsidies for select corporations. Klein continued his statement saying:
“This issue ultimately boils down to cronyism. Lawmakers in Des Moines are comfortable giving tax breaks and subsidies to a select few businesses, but are not prepared to make evenhanded cuts across the board. It is time for lawmakers to stand up for the free market in our state rather than just special interests.”