Returns show Jack Hatch paid $117,000 in state, federal taxes

DES MOINES - 2013 was a good year for Iowa Democratic gubernatorial hopeful Jack Hatch, according to his tax accountant.

The Neighbors for Hatch campaign made Des Moines senator's 77-page state and federal 2013 tax returns available Tuesday, showing that the candidate and his wife, Sonja, paid $88,455 in federal income taxes and $28,640 in Iowa taxes on an taxable income of $468,591.

Wednesday, Gov. Terry Branstad will make his returns public for the fifth straight year - a standard that his campaign is calling on Hatch to meet. Hatch campaign staffers did not rule out releasing five years of returns, but said they were not prepared to do so Tuesday.

Hatch campaign manager Grant Woodard said the tax returns were made public as part of the campaigns efforts to be open and transparent and signal to voters that Hatch would oversee an 'open and transparent government and given what we've seen in the past few weeks, there's a need for that.” He was referring to allegations of secret settlements made with state employees who were terminated.

The Hatches' income was primarily derived from two companies - Hatch Development Group, a real estate development company, and Perennial Property Management Services, which manages apartment properties. Both are solely owned by the couple.

The Hatches' federal payment of $88,455 represents an effective tax rate of 19 percent, according to their accountant John Sweeney. The couple's federal tax was $127,922 before federal investment credits were applied. The state tax of $28,640 was an effective rate of 7 percent. The Hatches' Iowa marginal tax rate is 8.89 percent, the state's highest.

'Their income goes up and down with the economy,” Sweeney said. 'There were lean years.”

However, investments made in 2008-09 'are paying off,” he said. 'This was a good year.”

The Hatches also gave $19,230 or 4 percent of their income to charities.

The Hatches also have interests in seven real estate partnerships in Des Moines and Cedar Rapids.

Hatch also released a letter from his physician stating that he is in 'generally good health.” He uses 'common medication” to control high blood pressure and elevated cholesterol. He recommended Hatch work on his 'food calorie intake, coupled with a regular exercise regimen.”

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