Democratic property tax plan the right plan

The Gazette's June 17 editorial (“Property tax fairness with balance”) on competing property tax plans at the Iowa Capitol is misleading, inaccurate and one-sided.

Under the Senate Democratic tax-cut plan, there is more commercial property tax relief for more property taxpayers. At least 83 percent of commercial properties - namely small businesses - are better off under the Democratic plan than the governor's plan.

I admit that the Republican plan is better for Wall Street. Some 30 percent of the Republican tax-cut - approximately $120 million - goes to out-of-state corporations.

The Democratic plan is a better deal for Main Street and for residential property taxpayers. It is fully funded by the state. There is no tax shift onto residential property taxpayers, no harm to local government services or economic development.

The Republican plan is not fully funded. The corporate tax-cut is paid for by increasing taxes on homeowners, undermining local economic development, and cutting local schools and government services. Under the Senate Democratic plan:

l The first $50 million of tax cuts begins immediately. The total tax cut grows by $50 million each year that revenue growth exceeds 4 percent until it is fully phased in at $200 million.

l When fully phased in, all commercial properties valued at $340,000 or less will be taxed at the residential rate. A Walmart Supercenter valued at $1.5 million receives a tax break on just the first $340,000 of value.

To learn more about our tax-plan: www.senate.iowa.gov/democrats.

Joe Bolkcom

State Senator

Iowa City