(Radio Iowa) – Republican Congressman Randy Feenstra is outlining more of the tax and spending policies he’d pursue if he’s elected governor. Feenstra says he’ll press to keep lowering the state income tax if he’s elected governor.
“We are competing with states like South Dakota that’s on our western border. We’re also competing with people leaving to Arizona and Florida and that is very much a problem when you have an older generation going to those states,” Feenstra said. “We lose all this philanthropic money that leaves our state.” South Dakota and Florida do not have a state income tax, while Arizona’s income tax is two-and-a-half percent. Iowa has also had a flat income tax rate since January 1st of last year, but it’s slightly higher, at three-point-eight percent.
“We have to make sure that we continue to figure out solutions to lower income tax and get rid of it at some point,” Feenstra said, “but we’ve got to do it in a reasonable manner to make sure that we’re paying our bills as we move forward.” Feenstra appears to have a different philosophy from Republican Governor Kim Reynolds and current Republican members of the legislature when it comes to using the billions of dollars that have been saved up in a Taxpayer Relief Fund to cover deficits in the state budget.
“It starts with making sure that we have a balanced budget, that we don’t spend one-time money. I would rather reduce tax than have a special bucket of money that it all flows into for some day that we can use it,” Feenstra said. “…We are all taxpayers and we want to make sure that we’re paying enough taxes to make sure that we can run government. We don’t want to take excess dollars from taxpayers. We want to give it back to the taxpayers.” Feenstra is opposed to an increase in the gas tax. He suggests pro-business policies, like tax cuts, would fuel an increase in state gas tax revenue.
“When you increase our economy and when you get more cars on the road, people buying more gas will help us create better roads and infrastructure,” Feenstra said. Feenstra has pledged to cut and freeze property taxes since he launched his campaign for governor last November. Yesterday (Tuesday), Feenstra told Radio Iowa he supports a freeze on the property taxes on homes owned by Iowans who are 65 or older — but when it comes to a statewide limit on property tax growth….
“We cannot have a one-size-fits-all,” Feenstra said, “meaning that I’m willing to work with the legislature on lowering property taxes, but what’s happening in Des Moines and other places might be quite different from what’s happening in small towns.” Feenstra says a uniform property tax structure would not work. “You’ve got to make sure there are parameters in there for the different types of demographics in each community — the ones that are growing and are not growing — and you do this based on the history over the last 10 years on what has happened to that community and creating a system that works in each community to lower their property taxes and make sure seniors can stay in their own homes.”
Republicans in the Iowa House and Senate and Governor Reynolds have said property tax relief is a must-do during this year’s legislative session, but they have yet to agree on a plan — so the issue may remain unresolved for Iowa’s next governor.
