As was expected, the move proposed by the governor of Iowa to raise gaming taxes by as much as 63% of their current amounts had prompted the gambling industry of the state to respond. The arguments presented by gaming organizations like tracks and casinos against the Gov. Terry Branstad’s proposal express their fears that they might be forced to leave the business or their employees and several other communities whom they provide jobs, such as tourism and charitable donations, could face severe hardships. These could very well be highly exaggerated assertions by the gambling industry, however the move from the governor to raise the taxes by such a high margin in order to cope for the corporate income tax cut of $200 million doesn’t make much sense either.
There appears, at least for the moment, no pressing need for the government to cut corporate taxes and then raise gambling taxes. It is being said by the experts that this move would have almost negligible effects on the state’s economy. The motive of the move is supposed to be helping out small and marginalized businesses in adding new workers, however these small businesses don’t have to pay corporate income taxes anyway and the effects of tax cut will be spread out so thin for all the big businesses that in the end the difference for them will be almost negligible, hence providing no incentive at all for larger companies to expand their businesses in Iowa.
What is noticeable in the whole matter is that a Republican like Branstad, who is strongly opposed to taxes in general, should be the very person to suggest any kind of tax increase, be it on gambling or anything else.
