New at the State Fair: Tax Policy

The Iowa State Fair, founded in 1854 and still one of America’s great experiences, offers a unique opportunity this year for Iowans and other fairgoers: The chance to shape future U.S. tax policy and help create greater economic opportunity in the process.

The U.S. House Committee on Ways and Means, responsible for taxes, tariffs, and such social service programs as Social Security and unemployment, is planning a bipartisan field hearing on Friday (Aug. 16) at the State Fair’s Oman Family Youth Center.

So, in addition to the Butter Cow, champion vegetables and livestock, fairgoers can also see a legislative effort associated with what some are calling the “Super Bowl of Tax.”

The hearing will gather information on the impact of tax policy on middle-income Americans, especially the Tax Cuts and Jobs Act. It became law in 2017, but many of its provisions benefiting middle-income Americans will expire next year, including a higher child tax credit, a larger standard deduction, and lower individual income tax rates.

As a result, a majority of Americans face higher federal income taxes if Congress doesn’t act, according to the Tax Foundation, a Washington, D.C.-based think tank.

On behalf of Transamerica, one of Eastern Iowa’s largest employers, I welcome all the Committee’s members to Iowa, particularly Iowa’s Rep. Randy Feenstra.

I offer a special welcome to Committee Chairman Jason Smith, a Missourian who has been conducting similar field hearings across the country. He deserves credit for taking this important bipartisan process” outside the beltway.”

Middle-income Americans, our economic backbone, are experiencing strains impacting their financial stability and quality of life. This includes slower-growing income and inflation for essential items like housing, health care, and education.

Transamerica is keenly interested in tax policy impacting Americans and their families.

From Cedar Rapids, our largest employment center, we manage more than $45 billion of insurance policies for 70,000 Iowa customers, and nearly $500 million of retirement assets for 82,000 Iowans.

Insurers are heavily invested in Iowa’s success. This includes approximately $65 billion in agriculture loans, education bonds, retail and commercial mortgages, and other facets of Iowa’s economy. Our products and services safeguard families and support workers and employers.

Collectively, Iowa’s insurance and retirement industry accounts for 55,000 jobs and a little more than 10 percent of our gross domestic product. This makes Iowa the leading state in terms of insurance industry output as a percentage of GDP.

We appreciate the Ways and Means Committee’s bipartisan attention and leadership for tax policy in Washington that’s strengthening families, communities, and small businesses. We applaud Chairman Smith’s focus on middle income America.

To everyone attending this year’s Fair on Friday, I encourage you to stop by the hearing to see our democracy in action. And of course take advantage of the many sights, attractions, and experiences offered at the Iowa State Fair!

Will Fuller is president and CEO of Transamerica Corporation.