House Plan Would Make Tax Increase Harder to Pass
Both House & Senate Concede to Massive Spending

WASHINGTON, D.C. – Americans for Tax Reform (ATR) strongly opposes efforts by Senate Republicans in Iowa to increase taxes on Iowan families. The Senate plan, finalized in caucus on May 12, 2003, would create a $700 million corporate welfare slush fund called the Iowa Values Fund by doubling the cigarette tax to 72 cents/pack and increasing distilled spirits taxes by an unspecified amount.

The Senate also agreed to reduce Iowa\’s nine-bracket state income tax system with three brackets, saving taxpayers $307 million. But the plan would also eliminate federal income tax deductibility and impose tax code streamlining recommendations authored by a multi-state tax cartel which considers Internet taxation its mission.

The House plan would sell bonds to generate a $810 million slush fund. The Fund is the brainchild of Governor Tom Vilsack. The House plan is contingent upon a constitutional amendment making it harder to increase taxes on Iowan families, and also reduces the number of income tax brackets from nine to three.

"Reducing the number of income tax brackets is a good idea, but tax increases and enormous slush funds are definitely not," commented Grover Norquist, President of ATR.

The following Iowan lawmakers have signed the Taxpayer Protection Pledge, promising to "oppose and vote against any and all efforts to increase taxes."

1. Kenneth Veenstra (S-2)
2. David Johnson (S-3)
3. Stewart Iverson, Jr. (S-5)
4. Mark Zieman (S-8)
5. Kitty Rehberg (S-12)
6. Charles W. Larson, Jr. (S-19)
7. Larry Mckibben (S-22)
8. Nancy Boettger (S-29)
9. Gene Maddox (S-30)
10. Jeffrey Lamberti (S-35)
11. Neil Schuerer (S-38)
12. Maggie Tinsman (S-41)
13. Bryan Sievers (S-42)
14. David Miller (S-45)
15. Ralph Klemme (H-3)
16. Dolores Mertz (H-8)
17. George Eichhorn (H-9)
18. James Kurtenbach (H-10)
19. Henry Rayhons (H-11)
20. Chuck Gipp (H-16)
21. Bill Dix (H-17)
22. Ervin Dennis (H-19)
23. Gene Manternach (H-31)
24. Kraig Paulson (H-35)
25. Lance J. Horbach (H-40)
26. Geri Huser (H-42)
27. Dan Huseman (H-53)
28. Christopher Rants (H-54)
29. Jack Drake (H-57)
30. Clel Baudler (H-58)
31. Scott Raecker (H-63)
32. Carmine Boal (H-70)
33. James Van Englehoven (H-71)
34. Betty DeBoef (H-76)
35. Daniel Boddicker (H-79)
36. James Hahn (H-80)
37. James Van Fossen (H-81)
38. Cecil Dolecheck (H-96)