Major tax cuts are needed to spur job creation in Iowa, according to a handful of area Republican candidates seeking seats in the state Legislature.
Reducing regulations on businesses and preserving Iowa's status as a right-to-work state also figure into the candidates' plans for putting more people to work.
In the 25th Senate District, Larry Aden, a farmer from Jolley, and Chris McGonegle, a flooring contractor from Fort Dodge, generally agree on the need for hefty tax cuts. They'll square off in the June 8 primary election, with the winner facing state Sen. Daryl Beall, D-Fort Dodge, in the November general election.
The 25th Senate District includes Calhoun and Greene counties and most of Webster County.
In the 8th House District, the Republican candidates are Stephen Richards, a physician from Algona, and Laurens Police Chief Tom Shaw. Alissa Wagner, of Rutland, filed petitions to get her name on the ballot in that race, but she has withdrawn. Wagner has endorsed Shaw.
The Republican nominee will face Democrat Susan Bangert, of Algona, in the general election. The winner will replace retiring state Rep. Dolores Mertz, D-Ottosen.
The 8th House District includes Humboldt and Pocahontas counties, southern Kossuth County and northwestern Webster County.
Here, in the latest of a series of stories on state issues, the candidates offer their thoughts on how to create jobs by cutting taxes.
25TH SENATE DISTRICT
Larry Aden
Aden said he believes tax reform is essential to creating jobs.
''Mostly, we have to change our taxation system,'' he said. ''We can't be having this bank robber mentality for what we want to tax.''
Aden said he believes an individual's total tax burden, including federal, state and local levies, should not exceed 10 percent of their gross income.
The candidate said he wants to switch the state to a flat income tax. He also wants to change the property tax system by instituting a homestead exemption that he said ''reflects the true cost of housing a human being for a year.''
Aden said he believes the state must stop taxing profits, dividends and repatriations from co-ops because those funds are necessary for reinvesting in businesses and creating jobs.
Chris McGonegle
''We need to remove obstacles to job growth by creating a more favorable business climate in Iowa for job growth,'' he said. ''We can accomplish this by helping Iowa employers through eliminating and modifying regulations that obstruct job growth.
''The Legislature should not make any changes to Iowa's right-to-work law,'' he added. ''States with right-to-work laws see faster job growth.
''We should make fundamental changes to our tax structure through lower taxes, with the end goal of eliminating income taxes and corporate income taxes,'' McGonegle said. ''Studies have shown that states with no income tax have greater economic and population growth. These states saw a 23 percent growth in jobs and those with high income taxes saw much smaller gains in jobs.''
8TH HOUSE DISTRICT
Stephen Richards
''I don't think the state or federal government can create jobs,'' he said. ''Only business people can do that.''
Richards said he wants to eliminate the state's corporate income tax, or at a minimum, cut it in half. That, he said, will free businesses to expand and create jobs.
Eliminating or cutting the corporate income tax would reduce the state's income, but Richards said the loss would be made up by increased personal income taxes paid by people filling the newly created jobs.
''I think you make the money up real fast,'' he said.
Tom Shaw
''One of the best things we can do for job creation is to become a more business friendly state by lowering corporate taxes, property taxes and franchise taxes,'' he said. ''I think if you lower them you actually get more revenue because you have more businesses, more jobs and more people paying personal income taxes. You gain in the amount of revenue because you're growing your tax base.
''We also have to fight to maintain Iowa's right-to-work status,'' he added. ''I know there are businesses that are hesitant to come to Iowa because they don't know if that's going to be repealed or not.''
Contact Bill Shea at (515) 573-2141 or bshea@messengernews.net