Branstad says taxes, regulations blocking Iowa job creation

Commercial property tax and regulatory relief are needed for the state's private sector to create more jobs, according to Governor-elect Terry Branstad.

Speaking to a capacity crowd at the Marion Public Library Tuesday, Branstad said commercial property taxes need to be lowered to encourage business expansion and attract new enterprises to Iowa, but not at the expense of other taxpayers.

"As we work to control and reduce the tax on commercial property, we also need to address agricultural and residential taxes," Branstad said. "If we restrict the growth of residential and agricultural taxes to 2 percent per year instead of the current 4 percent, there will be still be some growth. It's my hope that we won't use as much tax abatement or tax increment financing.

"Right now, if you want te get commercial development, you have to use tax abatement or tax increment financing. If we're only taxing at 60 percent of market value instead of 100 percent, that will encourage growth and provide some revenue to communities."

Branstad said his administration will review all new regulations to determine their impact on job creation or elimination. He said six key department heads will meet each month to provide an update on meeting goals and objectives as well as eliminating duplication and waste.

Branstad said the Iowa Department of Economic Development will work to encourage entrepreneurial efforts, noting that most new jobs come from existing business. He also wants to resurrect economic incentives for businesses to engage in international trade.

"Vermeer Manufacturing in Pella has a plant in China, but many of the components are produced in Iowa," Branstad said. "Thirty percent of the jobs at Vermeer are directly tied to international business."

Branstad said his administration plans to meet with local government officials to work on eliminating costly state mandates. He said tough decisions will need to be made to bring state spending in line with available revenues.

"We can't ignore the tough problems and continue to kick the can down the road," Branstad said. "We're seen families cut back and businesses make tough decisions to reduce expenses.  We think it's time that government do the same thing."

Branstad said the Iowa Department of Education will place a critical focus on math and science curriculum.

"The focus is going to be on achievement and accountability," he said. "We're going to have clear, understandable standards and assessments to see that students are achieving what we are expecting. That's how I think we can get Iowa back to being the best in America in education."