Ames Progressive

I read with great interest a Tribune article about the effort to add needed programs at our state prisons, which would help rehabilitate citizens: jail diversion, drug courts, mental health programs. California has an alternative system in place which has saved the state billions of dollars, as well as saved families, children, and communities.

I was excited at the possibilities, then I read the concluding paragraph: state senator Jack Hatch, who co-chairs the legislative group overseeing the DHS budget, says that while these are good programs, there isn’t money…

I have an answer.

To help the state provide financing for our Common Good, this would seem to be a great time to support closing an Iowa loophole - “separate entity” filing - which has caused a great loss of revenue for our state, and move to “combined reporting.” By not closing this loophole, which allows multi-state businesses to avoid paying taxes on all their business income, it is estimated that our state loss may be as much as $100 million per year.

Our Iowa-based firms pay corporate income taxes but, by not closing this loophole, these Iowa firms not only find they have to compete against large multi-state corporations in an UNlevel playing field, they (and individual taxpayers) ‘pick up the tab.’

Twenty states have already adopted this comprehensive approach (”combined reporting”) to loophole closing, including our neighboring states of Nebraska, Kansas, Minnesota, and Illinois. Surely, Iowa ought do this, to restore fairness to our Iowa businesses and to Iowa’s taxpayers. After all, corporations doing business in Iowa benefit from the investments that our Iowa state and local governments make in building and maintaining roads, water and sewer systems, law enforcement protection of business property, as well as the public education systems which educate their workers and the children of their companies’ employees.

I want my taxes to help stop recidivism and improve the health of those released from our jails and prisons. I want my taxes to cover quality education. I want good fire and police protection. I want clean, safe water. Closing this loophole would help us all, immensely. And, it would restore fairness to our corporate income taxes.

YOU can help! Press your elected state legislators, as well as the Governor!!