
From the Roth CPA Tax Update Blog:
Governor Culver yesterday signed the big tax break for the server farm Microsoft has been dangling over the state. Meanwhile, the Iowa House yesterday passed two bills that show their attitude to the businesses that are already here.Ouch!
The House passed a bill to exempt the federal individual tax stimulus checks from Iowa taxes yesterday (HF 2417). The bill doesn't extend to Iowa the federal bonus depreciation and Section 179 asset expensing provisions of the federal stimulus package; nor does the "code conformity" bill passed yesterday in the House (SF 2123) that otherwise adopts federal tax computation rules to Iowa. In doing this Iowa repeats the mistake it made in failing to conform Iowa to similar provisions in the 2001 stimulus bill, a mistake that required a special session to only partially correct. As a result, taxpayers filing Iowa returns will have to keep different sets of fixed asset records for Iowa at their own expense. They will also have to pay for years of idiotic Department of Revenue notices that the differences between federal and Iowa taxes will cause.
The Moral? The politicians love big, headline generating business openings, but they care a lot less less for the small businesses that don't have lobbyists -- the ones that pay the costs of running the government on behalf of Microsoft and Google.
I totally agree.
So Microsoft can avoid many millions of dollars in property and sales taxes for 50 or 60 server-watching jobs?
Why, just a few years ago, Attorney General Tom Miller joined in a lawsuit suing Microsoft for being all monopolistic because of their Internet Explorer browser. The case was settled and a few State Trooper cars were bought out of the $2 million.
Every member of the Iowa Legislature who voted for this and the Governor should have a computer dropped on their heads for authorizing this corporate welfare.
Here's what Iowa residents, taxpayers, and small business owners ought to be doing to the Capitol building:

Just remember that Ted Waitt, after being turned down by numerous Iowa banks, convinced his grandmother to put up a $10,000 CD as collateral so he could get Gateway Computers started in the Sioux City area in 1985. Waitt later moved the company from Iowa to South Dakota because of that state's lack of personal or corporate income taxes.



































