Overview / Major Events Big pieces of legislation are starting to move, particularly in the Senate, where debate focused on a comprehensive new approach to prosecute instances of work comp fraud and passage of a tax reform package that a new fiscal analysis shows would reduce individual income tax collections in Iowa over one billion dollars. Also, the Governor released her annual list of appointees to Iowa’s numerous boards and commissions. That list contains some familiar names to readers of this newsletter and those people are highlighted below. The Senate now has until April 15 to act on these appointments (and confirmation requires a 2/3 vote of the Senate’s 50 members). Senate Passes $1.3 Billion Income Tax Reduction On Wednesday night the Iowa Senate passed SF 2383 (successor to SSB 3197), a comprehensive tax reform bill that, according to an analysis by the Legislative Services Agency, will reduce individual and corporate income taxes in Iowa by nearly $1.3 billion by 2023. Here are the highlights from the fiscal analysis (by tax year): |
January Survey Results at a Glance:
OMAHA, Neb. (Jan. 18, 2018) – The Creighton University Rural Mainstreet Index declined slightly in January from December’s weak reading, remaining below growth neutral, according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Overall: The index, like all indices in the survey, ranges between 0 and 100 with 50.0 representing growth neutral, fell to 46.8 from 47.8 in December. Though the overall index remained below growth neutral, it is significantly higher than the reading for January 2017. “While the overall Rural Mainstreet Index (RMI) for January declined and remained below growth neutral, year-over-year indices are trending higher. Clearly, based on our recent surveys, the negatives are getting less negative,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. When asked to name the greatest 2018 economic challenge for their banks, four in 10 bankers reported that loan defaults represented the biggest challenges for the year ahead. This is well ahead of the second ranked challenge of competition from Farm Credit coming in at 15.6 percent. Farming and Ranching: The farmland and ranchland-price index for January rose to 42.2 from 39.8 in December. This is the 50th straight month the index has fallen below growth neutral 50.0. December Survey Results at a Glance:
OMAHA, Neb. (Dec. 21, 2017) – The Creighton University Rural Mainstreet Index improved from November’s weak reading but remained below growth neutral, according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Overall: The index, like all indices in the survey, ranges between 0 and 100 with 50.0 representing growth neutral, expanded to 47.8 from 44.7 in November. While the overall index remained below growth neutral, it is up approximately 11.4 percent from December, 2016. “While the overall Rural Mainstreet Index (RMI) for December remained below growth neutral, this is the highest December reading that we have recorded since 2014. Clearly, based on our recent surveys, the negatives are getting less negative,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business. Only one-fifth, or 20.4 percent, of bank CEOs reported that their local economy was expanding. While this indicator remains bearish, it is well up from the 8.7 percent reporting an expanding local economy in February 2016. by Dave Caris, CEO - Community Bankers of Iowa Tax reform legislation has not yet been introduced in the Iowa Legislature, but the Governor, the House and the Senate are all expected to release their versions of tax reform legislation in the next several weeks. Tax or Ways and Means Committee bills are not subject to the funnel deadlines of the Legislature, so comprehensive tax reform, including the issue of credit union taxation, will be a live issue until the end of the Legislative Session in April. Prior to the introduction of legislation and the resulting debate, the Credit unions have launched a massive media and grassroots campaign in an effort to maintain their "FREE RIDE."
It's important that bankers speak out to policy makers on this critical issue to counter the onslaught of contacts from credit unions. The Iowa Bankers Association has developed an excellent and quick method of finding and emailing your State Legislator to speak out on this issue. Just click here. The IBA and CBI are united on this major issue. We urge you to email your State Senator and Representative and, in your own words, tell them it's time to end the free ride. The following are a few key points you may want to consider:
by Dave Caris, CEO - Community Bankers of Iowa Iowa's credit unions have launched a massive media and grassroots campaign before even seeing legislation to finally require them to pay their fair share of taxes. When you are talking to your employees, friends, neighbors and policy makers about this issue, keep the following key points in mind:
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