Issue Position: For Fiscal Responsibility

Rob Hogg supports fiscally responsible government that meets its obligations for education, public health, natural resources, and public safety, and invests wisely for our future. He has made tough decisions -- such as opposing government building projects and corporate giveaways, reducing the number of middle managers in state government, and cutting redundant information technology systems -- to make sure state government is run as efficiently as possible and has the resources it needs to serve Iowans.

Unfortunately, under Governor Reynolds, the state's budget has been a mess. Over the last two years, the Republican majority in the Iowa Legislature and Governor Reynolds and Governor Branstad made major mid-year budget cuts to education, public safety, human services, veterans, aging services, and natural resources (see chart). These major mid-year budget cuts disrupted services, cost jobs, and raised college tuition.

While Republicans said the state did not have the money, they were in fact making these cuts to help justify the reckless and costly tax bill they passed on May 5, 2018, that primarily helps the wealthiest taxpayers (SF2418).

It fails the Iowa common sense test to make major mid-year budget cuts, then turn around and cut taxes, especially for the wealthiest.

Here is how the GOP tax bill is tilted toward the wealthiest, by showing the average income tax cut in 2019 for taxpayers based on taxable income:

For annual taxable income of $1,000,000 or more, average tax cut is $18,773.

For annual taxable income between $70,000 and $80,000, average tax cut is $215.

For annual taxable income between $30,000 and $40,000, average tax cut is $92.

That is badly skewed in favor of the wealthiest taxpayers. At the same time, the tax bill is also expected to raise sales tax revenue by over $130 million a year, paid for primarily by working families and the middle class.

Rob Hogg opposed this reckless tax bill. He supports tax reform that actually helps Iowans, like the bill signed by Governor Vilsack that phased out state income taxes on Social Security income. Rob Hogg supports property tax reform that helps low-income homeowners, veterans, and seniors, especially those living on a fixed income. However, he opposes tax cuts that are fiscally irresponsible and fail to help working families in Iowa.

Source