A Des Moines Register report on the introduction of the new ownership of the Iowa Speedway in Newton tells us how things work in Iowa:
No one needed super sleuth Sherlock Holmes to figure out one of the first priorities of NASCAR as the new owners of Iowa Speedway introduced themselves Thursday during a press conference.
Three Iowa legislators were parked front and center in a reserved seating area. Multiple times during the news conference, officials thanked Sen. Bill Dotzler and Representatives Dan Kelley and Rob Taylor.
When the event sprinted toward its own finish line, only the trio with desks at the statehouse were publicly asked to jump on stage for a photo with new track president Jimmy Small.
So why do our humble public servants get to hang with big NASCAR celebrities? Because the ownership group that bought the speedway doesn’t qualify for the special corporate welfare that the legislature enacted just for the speedway a few years ago, and they want it re-enacted:
The law, as it stands, requires Iowa-based ownership. So the spigot that delivers that sales tax benefit, which Dotzler estimates at about $4 million to date, is being shut off as NASCAR grabs the steering wheel.
Dotzler promised to reintroduce the measure when the legislative session roars to life on Jan. 13, adding that he would support extending it beyond the original end date of 2016.
Government by special favor. And who benefits? NASCAR is a private company owned by a very wealthy family — one that evidently knows how to play the connections game. Meanwhile the guy running the pizza joint, the real estate office, the implement dealership, he gets a horribly complicated Iowa tax system with high rates to pay for lots of loopholes for other people. He gets automatic penalties for every honest mistake made in attempting to comply with this byzantine system. But hey, NASCAR!
The legislature is just too darn busy to find a way to enact a simple tax system with low rates and low compliance costs for everybody. But they have plenty of time to go to a press conference to sell a special tax break for a single wealthy out-of-state family. Priorities.
William Perez has been cranking out lots of good stuff lately, including today’s Donating an IRA as a Year-End Tax Strategy.
Margaret Van Houten, Do your Digital Assets have Value? Are they Important? (Davis Brown Tax Law Blog). Don’t leave the heirs without the password to your Bitcoin vault.
Christopher Bergin, Walk the Talk: The IRS Needs a Chief Who Supports Transparency (Tax Analysts Bl0g). And by that, he means for the IRS, not just for us.
Tax Justice Blog, New CTJ Report: Congress Should Offset the Cost of the “Tax Extenders,” or Not Enact Them At All. I like the second alternative best.
Roberton Williams, Where Are Tax Rates Headed? (TaxVox)
If you like your kludge, you can keep it. Obamacare’s Never-Ending Fix-a-Thon (Megan McArdle)
Phil Hodgen, Renunciation trends in Auckland “I received an email yesterday from a contact in New Zealand. Renunciations in the Auckland Consulate are apparently way, way up compared to last year.”
Stephen Olsen, Preparer Knappe(s) on the job: Delinquency Penalties, Advisors, and Reasonable Cause (Part 2 — I Finally Get to my point on Thouron). (Procedurally Taxing)
Get your friday Buzz! from Robert D. Flach!
Shocker. GAO: IRS Lacks Adequate Internal Controls (TaxProf). Maybe the $5 billion in annual refund fraud tipped them off.
Woo-hoo! Tax and other fun at deductible office holiday parties (Kay Bell)
News from the Profession. Aren’t You GLAD For This McGLADrey Holiday Card? (Going Concern)
The Otter legal strategy. A tax protester in Texas decided that his already slim chances in federal court would be helped by a really stupid and futile gesture. It went as you might expect, reports Courthouse News Service:
It took a federal jury just one hour of deliberation to convict a Texas man of hiring a hit man to try to murder the federal judge presiding over his tax-evasion case.
Phillip Monroe Ballard, 72, of Fort Worth, was convicted Wednesday of attempted murder-for-hire, after a two-day trial. He faces up to 20 years in prison.
It’s not the first time a tax protester has tried to improve his case by going after the judge. If it worked, though, that would have been a first.
Tags: Christopher Bergin, corporate welfare, economic development, Going Concern, iowa tax policy, Jack Townsend, Kay Bell, Margaret Van Houten, megan mcardle, Phil Hodgen, Roberton Williams, Stephen Olsen, Tax Justice Blog, TaxProf, William Perez