GRONSTAL DOESN’T SEE 36% TAX RATE PASSING

SIOUX CITY—THE DEMOCRATIC LEADER OF THE IOWA SENATE SAYS REPUBLICAN GOVERNOR TERRY BRANSTAD EITHER DOESN’T REMEMBER OR IS DELIBERATELY MISLEADING IOWANS ABOUT THE STATE TAX ON WHAT USED TO BE RIVERBOAT CASINOS.

BRANSTAD IS CALLING FOR A TAX RATE OF 36-PERCENT ON ALL STATE-LICENSED CASINOS, SAYING THAT’S THE RATE ORIGINALLY AGREED TO YEARS AGO.

SENATE DEMOCRATIC LEADER MIKE GRONSTAL SAYS BRANSTAD MUST HAVE A FAULTY MEMORY.

IN 1994, THE STATE’S RACE TRACKS WERE ALLOWED TO OPEN SLOT MACHINE CASINOS, WITH THE AGREEMENT THE TAXES FOR THOSE TRACKS IN ALTOONA, COUNCIL BLUFFS AND DUBUQUE WOULD GO UP GRADUALLY, TO A TOP RATE OF 36-PERCENT.

GRONSTAL IS FROM COUNCIL BLUFFS, HOME TO THREE STATE-LICENSED CASINOS, AND HE DOESN’T EXPECT BRANSTAD’S PLAN TO HIKE THE CASINO TAX TO 36 -PERCENT TO PASS THE LEGISLATURE.

BRANSTAD’S CALL FOR RAISING THE STATE TAX ON CASINOS IS DIRECTLY CONNECTED TO HIS REQUEST TO REDUCE THE STATE INCOME TAX ON CORPORATIONS, AS THE CASINO TAX HIKE WOULD RAISE ROUGHLY $200-MILLION AND THE CORPORATE TAX CUT EQUALS ABOUT 200-MILLION.

GRONSTAL SAYS THAT’S A TAX BREAK FOR BIG BUSINESS.

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