If you have any hope that Iowa will someday foresake absurd targeted tax breaks to pursue a business-friendly low-rate, low-loophole system, it doesn’t come from the Tax Update’s home district for the Iowa House, based on this piece in the Des Moines Register.
The Democrat in the race, Alan Koslow, has an ingenious plan to keep young folks in the state — indentured servitude:
Koslow’s plan is to offer forgivable loans to college students if they stay in Iowa for 10 years after they graduate. He also proposed a three-year income tax holiday for people younger than 25.
Apparently Iowa has this big pile of cash to lend that has escaped our notice. The Republican, Peter Cownie, offers no hope either:
Cownie, 28, said Koslow’s plan would be expensive. Instead, he wants to bring high-tech and better-paying jobs to Iowa by continuing to offer companies financial incentives to build here. Microsoft announced in August that it will build a $500 million data center in West Des Moines after state lawmakers approved about $3 million in tax exemptions for the Redmond, Wash., software giant.
“Does Microsoft need those tax credits? No,” Cownie said. “But it was needed to get those jobs for Iowa.”
Corporate welfare. How innovative. Repeat after me: you can’t grow your economy by taxing your existing businesses to lure and subsidize their competitors. At $500,000 per job, we’ll all be bankrupt by the time we achieve full employment. Or does this corporate welfare come out of the same pile of free money that Mr. Koslow wants to use to hold the youngsters hostage?
Will we ever have somebody who will campaign on raising Iowa’s business tax climate ranking from 45th out of 50 states?
By the way, Roth & Company has created 35 jobs, with exactly $0 state subsidies; we’re still waiting for our $28 million.
If you want tax silliness on a national scale, the TaxProf has the scoop for you.
UPDATE: I goofed. I actually miss being in District 60 by a few blocks. I regret the error, if not the district boundaries.