Smarter Than the Average Governor

A dear friend has passed away and as so often happens, the funeral was a long awaited reunion and also a chance to get acquainted with family members we hardly knew.

One of the grandchildren lives in Sioux City and is building a house across the river in South Dakota so they can keep more of their earnings.

Governor Kim Reynolds has come out as one who wants to make our ex-neighbor girl’s move to South Dakota pointless. Some landmark tax proposals promise to move Iowa to the top of a list of best places to live.

One is the 4% flat income tax. While my ex-friend at public radio claims I won’t compromise, I will. Income tax is slavery by definition and it isn’t a race thing, it’s a matter of keeping what you earn. Compared to what was confiscated from the poor souls sold out of Africa, 4% isn’t much.

The fairest tax would be a user fee. Maintaining roads, for example, should be solely financed through fuel taxes. They most directly reflect the value of the road to the user. A flat income tax is the same. We all benefit from having a third party to intervene in disputes between citizens, like a referee.

People who earn high incomes don’t use state services at a higher rate than low income earners. In fact, high earners are usually the ones who contribute most to the community, through support of local businesses and employment. They should not be penalized for their generous participation in society or their ambition and talent.

The exception to this is in state mandates and incentives that shouldn’t exist in the first place. Income tax has the support of the rich where these government handouts dwarf their tax burden.

I’ve read editorials and political statements that claim a flat tax would hurt the poor. Where did this mindset come from that says any one person can rightfully claim the wealth of someone else?

People who control what they earn are naturally more productive. It’s human nature. Like Mother Nature, you can’t fool it.

Reynolds also proposes to slash the state corporate tax. Not enough, but slash sounds great. I haven’t read much on this but I can just hear that corporations should pay their fair share. Well guess who pays corporate income taxes? Do you think they sell their lake house and speed boats for that? No. They increase prices so you can pay it. Raising prices has its limits though, because they have to compete with the rest of the world. Then they move to another state where they aren’t hated as much.

Reynolds also would like to stop driving off our retirees by eliminating the tax on retirement income. They were already taxed when they worked for it. If they stay here they will spend it here.

I suggest one more excellent idea for the governor. Iowa has a $1.24 billion budget surplus. Either spend it on needed infrastructure or give it back. It’s ours.

It’s a shame Iowa is losing people like Joy and Chris because politicians want to sit on their money.

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