Iowa looks more like Kansas

Dorthy could be forgiven for mistaking Iowa for Kansas these days.

The Kansas experiment in trickle down economics is famous for lowering taxes and cutting state expenditures to such an extent that the state nearly ceased to function. Iowa legislative Republicans seem determined to follow the same path.

Iowa cities are unable to hire new or additional police officers. We have such a shortage of correction officers in Iowa that work is unsafe for those on the job. Iowa is dead last of all 50 states in bridge safety. Iowa used to rank No. 1 in education but after years of underfunding we've dropped. Sixty percent of Iowa waterways are impaired.

So, what is the thinking under the Golden Dome of Wisdom in Des Moines? How do we make Iowa a more desirable place to live and work? Why, tax cuts, of course.

Thanks to a lot of federal COVID money and tight spending by the Legislature, Iowa has a surplus of over $1 billion dollars. Yet the Iowa Department of Natural Resources recently announced that it is planning to close the park ranger houses in 23 Iowa state parks because we can’t afford $1 million dollars in repairs. Instead of spending money on much needed improvements, Iowa is going to give the surplus away.

Republicans have passed legislation lowering taxes on corporations and the wealthy who will in turn show their gratitude with even more campaign contributions, a true symbiotic relationship.

Their argument is that lower taxes will entice more business to Iowa. Yet we can’t find the workers needed for the jobs we have now and businesses consistently do not rate low taxes as a priority when relocating. Quality of life, an educated workforce, infrastructure, and even recreation rank higher.

Although they did not run for election on it, Republicans passed a so-called “flat tax.” Gov. Kim Reynolds signed it into law Tuesday.

A flat tax is not necessarily simpler or more fair. The Iowa income tax as it stands now is mildly progressive, meaning that CEOs pay at a higher rate than their secretary. The sales tax is regressive; it is a tax on living expenses. Middle- and lower-income people spend much of their money on necessities subject to sales tax but higher income people spend less as a percent of their income. When Iowa’s overall tax structure is considered, the progressiveness of the income tax makes up for the repressiveness of the sales tax but a flat tax shifts the structure to very regressive.

A flat tax is only fair in the sense that people are treated equally but not equitably. Progressive taxation is Biblical; those to whom much is given, much is required. Regressive taxation is not; it is just letting the fat live off the poor.

It is even more unconscionable to lower the tax rate for the wealthy to 4 percent while keeping many of the tax breaks, credits, adjustments, and rebates already available mainly to them. The Legislature is literally “stacking” benefits for the privileged.

It seems the Republican economic model is to incentivize the rich by lavishing them with more money. The incentive for the poor is reducing benefits.

David Mansheim is a retired lawyer, educator and businessman living in Parkersburg.