Veto is Vintage Branstad

Twenty-two years ago, I was a bright-eyed page in the Iowa House who sat in on closed-door Republican caucus meetings. Coffee refills are a vital part of democracy, after all.

But one March day I was told to wait in the hallway. Gov. Terry Branstad's legislative liaison was visiting, and things were going to get too hot for my impressionable ears.

Somehow, the GOP House minority got the impression that Branstad would veto a minimum-wage increase pushed by Democrats. With Branstad as backup, Republicans took a tough vote against it.

But when it passed, Branstad signed it. Surprise. His liaison was coming to explain. I saw him through the door, standing, looking at his shoes, getting an earful.

I relate this for two reasons. First, it shows Branstad has been giving lawmakers confounding mixed signals since before I could legally order mixed drinks. Second, the governor doesn't always stiff low-income working folks.

But he sure did last week when he vetoed an increase in the Earned Income Tax Credit that would have thrown a modest bone to 240,00 working Iowans making under $45,000, with the vast majority making less than $20,000. It was part of a bipartisan tax bill negotiated with Branstad or his staff in the room. They raised no objections. The package passed both chambers without a dissenting vote.

He vetoed the earned income provision anyway. There was no deal, he said.

At a time when warring partisans can't agree on lunch, the earned income credit gets bipartisan backing. It's government sensibly saying,” Look, we're glad you're working, even though you don't make much. And because you don't make much, all sorts of taxes - gas taxes, sales taxes, local taxes, etc. - take a disproportionate bite out of your check. Here's a credit to soften the blow. Thank you.”

I've heard this called welfare. So I guess the mortgage deduction and child credit are also welfare. There are roughly a dozen tax credits on the books in Iowa benefiting businesses. I think we can spare one for workers.

Branstad scoffs that earned income credit recipients don't pay state income taxes. Actually, in tax year 2009, 58 percent of credit recipients paid income taxes. So Branstad is 42 percent right, very close to his latest approval rating.

Branstad says the credit doesn't create jobs. Truth is, a big chunk of the $16 million he vetoed likely would have gone straight to the local grocery store or gas station. The governor would rather cut corporate income taxes by $200 million, helping a lot of out-of-state firms.

He has yet to explain clearly how his corporate cut will create jobs. And at $1 billion every five years, he really should.

The governor says his plan has a voter mandate. Actually, what we wanted was a thoughtful governor, one who might realize that rising gas and food prices makes this a very odd time to play Scrooge with the tax code.

Lawmakers could override his veto. Sure. And I could still fit into my page jacket. Sadly, neither is going to happen.

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