Iowa Senate Blocks Tax Return to Iowa Families

Last week, I posted an online survey of legislative issues. I do this several times throughout the Legislative session in order to hear feedback from my constituents.

One of the questions I asked was related to the excess money in the state coffers over the past two years. Through sound budgeting and increased revenues, the state has accumulated about $800 million in extra tax revenue. This is money that was collected by the state, but not spent over the past 2 years.

This $800 million in excess revenue is in addition to over $620 million already in the state reserve accounts, which is 10 percent of the budget.

When doing the survey, there were a wide range of responses about what we should do with the $800 million. While there were many good ideas, people overwhelmingly preferred the money be returned to them in the form of tax rebates or tax cuts.

This week I co-sponsored an amendment that would return this money to the taxpayers. It would take the entire $800 million (while still keeping the $620 million in reserves) and send it back to the taxpayers. That would be about $375 per person, or $750 per family.

I believe this would show that we are good stewards of taxpayer's money. When we collect excess taxes, we don't invent new ways to spend it, we return it. It is important for the Legislature to remember that this isn't the government's money, it is your money.

I wanted a simple up or down vote on the amendment, but unfortunately the Senate Democrats blocked the amendment when it came up for debate.

When reading through the survey responses, there were many good ideas, from increasing our state reserves to spending the money on roads and bridges instead of raising the gas tax. I will be continuing to find ways to return this money to you, whether directly or by preventing future tax increases. 

In addition to the previously mentioned tax refund amendment, the other big issues being discussed are education reform and property tax reform. I will continue to work hard on both of these issues, as all three have huge implications for the state.  I will keep you updated on the progress of these issues as they work their way through the Legislature.

Please feel free to contact me with any questions or concerns you may have at jack@jackwhitver.com.