Hamerlinck’s Observations Week 12

How do you take the public out of a public hearing? Apparently, it is easy for the House Speaker; you just request the public to be removed by state troopers. Note to future politicians, you never, ever, ever step on the free speech of a free public. Also, you never, ever, ever limit the American voter’s right to establish grievances with their government. No matter how much you agree or disagree with an item, the discussion and any criticisms must be heard. As a politician, the taxpayers will be your bosses and all politicians must be accountable to the people who put them into office as politicians are ultimately public servants.

On Tuesday I attended the public hearing on House File 807 which removes federal deductibility from Iowa. Take a moment and look at your tax returns. Iowa allows you to deduct the money you pay in taxes to the federal government. The money you pay to the federal government is rarely enjoyed as it comes out of your paycheck and goes straight to the federal government. If this bill passes, you will begin paying state taxes on the tax money you pay to the federal government. Eliminating federal deductibility will result in a double taxation and would be a tax increase of $600 million.

Sadly, the bill was passed by the House Ways and Means Committee the night before it was scheduled to have a public hearing. The same bill passed out of the subcommittee in the Senate the same morning before the public had an opportunity to express their opinions at the hearing as well. Taking a vote before the public has an opportunity to speak on the issue is a direct insult to those who want to share their opinions. This inappropriate move by Democratic leadership in the House increased the passion of those wanting to speak to their elected officials. In response, the House Speaker requested state troopers to empty the House Chambers. That day the voters lost three times; once at the House committee meeting, once at the Senate subcommittee meeting, once at the public hearing.

No matter how you feel about federal deductibility or what political party you side with most, the public must have the right to express their opinions to government. Arrogance by elected officials at the state level resulted in politicians voting to push a bill without concern or care for public opinion. Even more egregious, most of the house members were not in attendance.

Political propaganda is utilized to shove these bills onto the public as if they are actually making positive steps for taxpayers. It is key to notice how bad legislation is being hidden in the same bill behind positive legislation. For example, eliminating federal deductibility alone would be a nearly $600 million tax increase on Iowans. No one can argue with these facts as the data is coming from the nonpartisan agencies of the Legislative Service Agency and the State of Iowa’s own Revenue Department. In order to gain public support behind repealing the state’s federal deductibility they are coupling tax credits and decreasing income taxes paid for 49% of Iowans. That is, for only the first year.

These credits and deductions will not be advantages to the taxpayer after the Congressional Tax Cuts of 2001 and 2003 run out at the end of the year. When you begin paying more in federal taxes more is available for the state to collect on. This means taxpayers are being told they will receive a deduction in the year of the federal stimulus package only to see themselves paying more at the exact same time the Bush Tax Cuts sunset in 2010. This means all Iowans will see a double tax increase in one year - one coming from the state and one coming from the federal government. I often hear it called “playing politics” however, I firmly believe it should be referred to as “distorting the truth.” This is your money!

Note: Friday, the Iowa Supreme Court unanimously ruled that gay marriage be allowed in the state. I will address this in my Friday newsletter.