Nobody backing down in this Iowa gas tax debate

JOHNSTON - Legislative leaders and Gov. Terry Branstad have given a green light to a plan to raise more than $200 million for transportation projects, but the leader of a taxpayers' group predicted Friday Iowans will put the brakes on the proposed 45 percent gas tax hike.

'It's the most regressive tax we have … the most loaded against low-income people,” Iowans for Tax Relief President David Stanley said about plans for a 10-cent-a gallon field tax increase.

He cited ITR's statewide poll that found 78 percent of Iowans oppose the increase, which Stanley said, is being promoted by 'powerful special interests that will make big money” from more transportation spending.

'I don't think they have a done deal yet,” Stanley, a former state legislator, said on Iowa Public Television's Iowa Press. The show can be seen at noon Sunday on IPTV and at 8:30 a.m. Saturday on IPTV World and online at www.iptv.org beginning Friday evening.

Transportation Committee chairmen Sen. Tod Bowman, D-Maquoketa, and Rep. Josh Byrnes, R-Osage, predicted there is sufficient support for a 10-cent-a-gallon increase to send it to Branstad's desk.

Bowman said legislators and the governor are working in a 'bipartisan spirit” to address paying for transportation improvements and predicted passage will be 'with a broad consensus.”

However, he added a caveat.

'I didn't say I was confident, but we can do it,” Bowman said when asked if more than half of both Democrats and Republicans - the threshold legislative leaders say has to be met - will vote for the tax increase.

Stanley questioned the Department of Transportation's estimate that it faces a critical funding shortfall of about $215 million a year. That's an estimate by 'honest people but they are people with a financial self-interest in asking for more money,” he said.

He said ITR is asking its 50,000 members tell their legislators 'a tax increase should be the last resort, not the first resort.” Finding efficiencies should be at the top of the list, Stanley said, adding that he could give lawmakers more alternatives if they asked.

Byrnes and Bowman said they have heard plenty of alternatives, but believe that flat 10-cent hike that would go into effect as early as May is the simplest way to meet the DOT's needs. Other approaches - a per mile tax rather than a per gallon tax, raising the sales tax on gas or apportioning a percentage of the state's $7 billion general fund for transportation come with complications.

'I just don't see how that works,” Brynes said about scooping general fund dollars, especially when the budget already is tight. '

I don't even want to have us in a situation where we have a debate of roads versus mental health. To me that just doesn't seem like the answer.”

Stanley agreed, telling the lawmakers taking the money out of the general fund is No. 6 of ITR's sic alternatives to a gas tax hike.

He was vague when questioned about the political consequences of defying ITR and voting for a gas tax. The group won't choose who to support or oppose based solely on the gas tax vote, Stanley said, but take it into account when weighing a legislative candidate's 'overall friendliness to taxpayers.”