Governor Vilsack has set Thursday, May 29th, as the date for the special session of the Legislature.  The Governor has indicated a willingness to sign legislation that the Republicans want, including the easing of certain business regulations and tax reform, in order to get them to vote for the Iowa Values Fund.

As passed by both the House and the Senate, the tax reform would cut income tax rates, as well as cut workers' compensation benefits and provide for so-called tort reform.  In its simplest form, tort reform means that it would be almost impossible for a person injured by a corporation (including an industrial agricultural facility) to ever collect punitive damages. 

Originally included in the regulatory reform legislation were provisions that would weaken endangered and threatened species protection in Iowa and the regulation of indoor air quality.  These provisions were taken out of the legislation (SF 344), but could be put back in during special session negotiations.  Please write to the Governor and your legislators, asking them to make sure that these environmental provisions, as well as the issues discussed below, are not passed in order to get the Iowa Values Fund passed.


Contact your legislator and the Governor immediately (before May 26th)
Go to www.legis.state.ia.us/Legislators.html to find home contact information for your legislators.  Go to www.governor.state.ia.us for contact information for the Governor.

Below is a sample letter:

Subject: Iowa Values Fund


I am writing to urge you to veto any legislation that includes weakening of Iowa workers compensation and environmental protection laws, protection from lawsuits for corporations, making Iowa taxes more regressive, or amending the Iowa Constitution.

The passage of an "Iowa Values Fund" that requires an abandonment of the basic Iowa value of fairness in the treatment of injured workers, the treatment of injured consumers, the protection of public health and natural resources, and the taxation of moderate and low-income citizens is unacceptable.

Sincerely,


What is the Iowa Values Fund?

The Iowa Values Fund is an $810 million economic development program envisioned by Governor Tom Vilsack that is intended to boost the Iowa economy by creating opportunities to grow and expand business and generate high quality jobs for Iowans.

The Cost of the Iowa Values Fund: Why It's Too Much

The purpose of economic development and the Iowa Values Fund should be to make Iowa a better place for everyone. Yet the deal being negotiated to pass the Iowa Values Fund would be in direct conflict with improving the quality of life for Iowans. Here are some facts about some of the trade-offs most likely to become part of the deal.

Regulatory "Reform"

*The civil justice rollbacks would make it more difficult for families to
protect themselves from environmental hazards, unsafe products and
unscrupulous business practices. For example, if you were hurt by a faulty
product, to get punitive damages in court, you would have to prove by a
preponderance of clear and convincing evidence that a wrongdoer acted with
the intent to harm in order to be awarded punitive damages. Under this
standard virtually all corporations would be immune from punitive damages in
Iowa, making it easier for them to jeopardize the health and safety of
Iowans.  This proposal could make it more difficult for residents living near CAFOs to collect punitive damages for harm caused by CAFO pollution.

Taxes

*A number of tax proposals are being considered and it is unclear which ideas will
emerge as part of any deal. 
*Income tax proposals that cut the state budget from $310 million to $684 million. The state budget has already been cut to the bone and state aid is being pulled from local governments.  Iowa's environment cannot afford more tax cuts.
*Increasing the sales tax by one penny to compensate for the income tax
cuts. Increasing the sales tax places a greater burden on low- and
middle-income families than on the wealthy. This conflicts with the
principle that taxes should be based on ability to pay. We need to increase
revenue, but this is the wrong way to go.
*Slowing down or freezing the cut in sales tax on utilities. For the same
reasons that a sales tax is a bad idea, eliminating a sales tax cut on
utilities, a necessity for almost everyone, conflicts with the principle
that taxes should be based on ability to pay.



Erin E. Jordahl
Director, Iowa Chapter Sierra Club
3839 Merle Hay Road, Suite 280
Des Moines, IA 50310
515-277-8868
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www.iowa.sierraclub.org
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