New Taxes and New Spending:

Measuring Accountability in the Iowa Senate

January 22, 2007

Accountability is a buzz word.  Politicians toss it at every political topic that comes around, not to say that using the term isn’t important, it is, but more important is identifying ways to measure accountability. 

Senate Republicans find that a good measure of government accountability is rooted in the way politicians raise and spend tax dollars. 

Take the current interest in raising Iowa taxes on tobacco and gasoline: There is a strong drumbeat in this General Assembly to raise taxes although we are just beginning to examine the arguments for and against adjusting these taxes.

Senate Republicans are not necessarily opposed to raising the tobacco tax to promote a healthier Iowa and reevaluating the road use tax fund to insure a vital economy, but the key difference is in how the money is spent.  The level of Senate Republican support for these tax increases will reflect our views on the merits of the Democrats’ spending plans.  I believe that an increase in these taxes needs to be directed at existing programs or given back to the taxpayers through some form of a tax cut, credit or rebate.  

In the instance of tobacco taxes, any increase in revenue we see from this declining revenue source must be dedicated to funding tobacco cessation and prevention programs, shoring up existing health care programs, and/or providing for tax relief.  It’s not a tax increase that needs to be collected and dumped into the general fund for any number of random Democrat campaign promises. 

Similarly, the road use tax fund, a mix of gas taxes and vehicle fees and fines, should only be adjusted if supporters can demonstrate that changes in these taxes will grow the economy through jobs and improved infrastructure and the additional road building expenditures are aligned with road-use patterns.

Whenever the legislature considers new taxes the discussion must revolve around the merits of additional government spending in comparison to burdening taxpayers with an additional loss of income.  Tax increases should only be considered when politicians can account for the new spending.

Senate Republicans will be vigilant in making sure these regressive taxes are not increased or adjusted without a solid plan to put this new tax money towards specific budget line items and not simply dumped into the baseline budget.  In order to understand what makes up a solid spending plan, I need to hear what you think. Please email me at mary.lundby@legis.state.ia.us with your thoughts.