On the Climate March, other lessons

Posted August 7, 2014 by iowapolicypoints
Categories: Energy & Environment, Organization

Tags: , , ,

140807-DO-walk-222640IPP co-founder David Osterberg this week is on the Great March for Climate Action.

On the March, which is currently proceeding through western Iowa, Osterberg is seeing good examples of another issue he’s passionate about: care for the land, and controlling water pollution. Or not, as in the photos in this post.

140807-walk-195651

Whether it’s a dirty stream, as at left, or crops planted where a stream should be, above, the picture is one of what happens when our public policy expectations are low. We can see examples around us, if we just look.

For more about issues of water pollution caused by ag runoff, and better approaches to reduce it, see several reports on our Iowa Policy Project website.

In particular, see our recent report on Iowa’s Nutrient Reduction Strategy, which relies heavily on voluntary measures instead of enforcement of public standards.

 

Bargain, schmargain

Posted July 30, 2014 by iowapolicypoints
Categories: Budget and Tax, Organization

Tags: ,

It’s back again: Iowa’s SALES TAX HOLIDAY.

What a charade. Retailers love it, because it’s a gimmick to lure people into their stores to buy things at full price, instead of waiting for a back-to-school sale.

The happy-talk label disguises its real impact: to throw away revenue while pretending to, as one report put it, “help boost the economy and give consumers a break.” It does neither.

Iowa’s policymakers are selling you a pig in a poke. You’re told you’re saving money, but you’re buying dirty water, underfunded schools and fees for amenities such as parks. The cost is estimated at over $4 million.

For two days, Iowans will spend money on the same things they would have spent money on anyway, in those two days or others, so it doesn’t boost the economy. Sales taxes do hit low-income folks hardest, but those families would be better served by a break that went all year. They still have only so much to spend in these upcoming two days.

Let’s also recognize that consumers won’t save all that much, if at all — and may in fact pay more. How many times have you rushed off to a “6 Percent Off” or “7 Percent Off” sale? Who’s to say a retailer, with this officially sanctioned “holiday” marketing, won’t bump prices by 10 percent or call off a 20 Percent Off sale that might have been in place?

But it is a deal for politicians who like to brag about cutting taxes, while pointing fingers at others when they cut teachers and police officers because budgets are tight.

If we were honest with ourselves, we would welcome Tax Day and loathe the first weekend of August.

2010-PF-sqPosted by Peter Fisher, IPP Research Director

 

 

Comforting the comfortable

Posted July 25, 2014 by iowapolicypoints
Categories: Budget and Tax, Economic Opportunity

Tags: , , , ,

Comfort the comfortable and penalize the poor. Like the idea? If so, you’ll really like legislation scheduled for consideration today in the U.S. House of Representatives.

The House is scheduled to take up legislation that would gut improvements for low-income Americans in the Child Tax Credit (CTC), improvements passed originally in 2009, renewed in 2010 and 2012, the latter as part of the “fiscal cliff” package, where it was used as a bargaining chip to pass very expensive exemptions in the estate tax — a benefit only to America’s super-rich.

To put this in context, the House leadership bringing this new legislation to a vote will not even consider an increase in the minimum wage, now stagnant over five years nationally (6 1/2 in Iowa). The CTC, it must be noted, is one of the nation’s most effective anti-poverty tools, offsetting part of the cost of raising a child. So, as families earning at or below the minimum wage continue to lose ground, the CTC proposal will set them back even further. As noted by the Center on Budget and Policy Priorities (CBPP):

But a single mother with two children who works full time throughout the year at the minimum wage of $7.25 an hour (which House leaders oppose raising) and earns just $14,500 would lose $1,725. Her CTC would disappear altogether.

A loss at lower incomes — yet a boost at higher incomes. According to Citizens for Tax Justice, the Iowa impact of the new legislation would be:

  • a $285 loss on average to families with incomes below $40,000, and
  • a $696 benefit (tax cut) to families with income above $100,000.

Here’s how it works, according to a summary by CTJ:

The House Republican bill, H.R. 4935, would expand the CTC in three ways that do not help the working poor. First, it would index the $1,000 per-child credit amount for inflation, which would not help those who earn too little to receive the full credit. Second, it would increase the income level at which the CTC starts to phase out from $110,000 to $150,000 for married couples. Third, that $150,000 level for married couples and the existing $75,000 income level for single parents would both be indexed for inflation thereafter.

Adding insult to injury for low-income folks is that the improvements targeted for repeal came in the aforementioned “fiscal cliff” package, which made permanent big estate tax breaks for the rich, while extending improvements in the Child Tax Credit and Earned Income Tax Credit for only five years. CBPP’s Robert Greenstein at the time called that a “bitter pill.”

That was before these new proposals not only to cut back the CTC for lower-income families — but to expand access at higher incomes — and to adjust the high end for inflation, something lawmakers have refused to do for the minimum wage.

A bitter pill? At least. For some, all of this might seem to be an overdose.

Owen-2013-57Posted by Mike Owen, Executive Director, Iowa Policy Project

Focusing better on new Iowans

Posted July 3, 2014 by iowapolicypoints
Categories: Budget and Tax, Economic Opportunity, Organization

Tags: , , , , ,

Oftentimes the topic of immigration reform stirs up heavy debates and preconceived notions about what it means to be an immigrant in the United States. Reality about immigrants, their occupations and contributions to the economy can be misunderstood.

But here in Iowa, we know immigrants are important to our state and our economy. There are 120,000 documented and undocumented immigrants contributing both as workers and as employers. Most immigrants came to find jobs so it shouldn’t be surprising that most are of prime working age, and are working.

Look around your community and you will see them working in grocery stores and delis as butchers and meat cutters, teaching in high schools and colleges, cleaning homes and businesses, and working as computer programmers. Some are small business owners, filling gaps for particular goods and services in Main Street-type businesses.

10371388_10154327977850154_8158749370873517078_nOne big misunderstanding is about the state and local taxes that immigrants pay, regardless of their legal status, on the income they earn, the goods they purchase and the homes where their families live.

It is also estimated that 50-70 percent of undocumented workers — those who do not have legal authorization to work or live in the United States, have federal and state income and payroll taxes withheld from their paychecks.

Our new Iowa Policy Project report estimates that undocumented immigrants annually pay $64 million in Iowa state and local taxes, increasing revenue available for public programs and services, including many services they are unable to access themselves.

Immigration reform enabling work authorization and a path to citizenship for current undocumented residents would bring benefits not only to immigrants but all Iowans. Legal work status would open up better job opportunities and make it more worthwhile to invest in worker education and training. Immigrants would be less susceptible to wage theft and other exploitation by employers.

Legal status would increase earnings for workers and revenues for the state. It would mean that young adults brought here as children (DREAMers) could attend college and get better jobs and it would give immigrant business owners access to more options to start or expand a business.

While the future of immigration reform is uncertain, we can be certain that immigrants contribute to the state’s workforce, economy, tax revenues and communities.

IPP-gibney5464Posted by Heather Gibney, IPP Research Associate

What are U.S. workers missing?

Posted June 23, 2014 by iowapolicypoints
Categories: Economic Opportunity, Organization

Tags: , , , , ,

Visiting other counties can mean drinking coffee in cafes, museums, night life and relaxing next to the sea. The best trips also include conversations with people from these lands.

I just taught a class in Romania and then visited Scandinavia to see friends and relatives. In both places I talked about work and family life. The first issue that always comes up is paid vacation, which America does not require.

What many U.S. workers may not know is that every other developed country has a legal requirement for paid vacation and holidays. All countries in the European Union require at least four weeks of paid vacation. Austria is the most generous, guaranteeing workers a legal minimum of 22 paid vacation days and 13 paid holidays each year.

U.S. workers have to depend on competition for such benefits. Companies must compete for workers. So in the U.S. the average worker gets 16 paid vacation days and holidays. However, that average is brought down by the fact that 1 in 4 U.S. workers does not have a single paid day off. That would not be allowed in Europe, or New Zealand, or Japan or Canada. In Canada, the federal government requires 19 paid days, and some provinces add additional time.

This data, from the Center for Economic and Policy Research (CEPR) and USA Today, reflects what I heard in conversations during the last few weeks.

I can hear it now: Raising benefits will cost jobs. Wrong. The CEPR data comes from 2012 when Germany with one of the most generous time-off packages had an unemployment rate of just 5.5 percent when ours was 8.1. It becomes part of the overall marketplace.

Maternity leave is another benefit where the U.S. falls behind. According to the International Labour Organization and a study at McGill University in Canada, the U.S. joins Papua New Guinea, Swaziland, Liberia and Lesotho as countries that provide no financial support for working mothers through their job.

Since Bill Clinton pushed through the FMLA (the Family and Medical Leave Act), a mother in the U.S. can take off 12 weeks to give birth but there is no requirement that the time off be paid. Again when I talked to people on my recent trip, I was amazed that a worker in Sweden can get 420 days to take care of a new baby with 80 percent pay. That can be shared between the mother and father.

Most other countries are not so generous but Germany gives 14 weeks and Denmark requires a full year at 100 percent of pay. Japan demands 14 weeks at 67 percent of pay. In New Zealand, 14 weeks are paid at 100 percent and one can ask for another 38 weeks unpaid. Canada requires 52 weeks, with 17 weeks paid.

These are countries with successful economies. In some, jobs are harder to get than in the U.S. but in others, like Germany and New Zealand, the unemployment rate is lower than ours.

Travel overseas is a good thing. You get to relax, recharge the batteries and come back ready to do your job better.

You also might learn that what we have come to accept as reasonable family and work life in this country is so out-of-step with the rest of the world.

IPP-osterberg-75  Posted by David Osterberg, Founding Director of the Iowa Policy Project

Watching Iowa jobs: Don’t miss the deficit

Posted June 20, 2014 by iowapolicypoints
Categories: Economic Opportunity, Organization

Tags: , , , , ,

Iowa’s up-again, down-again job picture is looking up again, at least for now. The May numbers from the state show an increase of 6,200 jobs. Coming on the heels of a 3,700 increase in April, this marks the first two-month gain since the end of last year, and the increase is the largest since last October.

One-month results, however, do not tell the whole story of what’s happening in the state economy and the job market. Over the past year, Iowa has averaged a gain of about 2,100 jobs per month, which is a modest pace. At this rate it would take about three years for Iowa to completely recover from recession losses.

In fact, even though Iowa has more jobs than it did when the recession started, the state shows a jobs deficit:

Basic RGBSource: Economic Policy Institute

Given that the population of Iowa has grown since the start of the recession, it makes sense that more jobs need to be added to the economy each year in order to keep up with the growing number of people. According to the Economic Policy Institute, 23,800 jobs have been added so far but 71,600 were needed by now to keep up with this growth. This means that there aren’t enough jobs for everyone who wants or needs one — a deficit of 47,800, as shown in the graph above.

For more about the latest Iowa job numbers, see our new Iowa JobWatch report. IPP has given its view of the monthly numbers since 2003 — there are always plenty of new angles for a “Job Watcher.”

IPP-gibney5464   Posted by Heather Gibney, Research Associate

Free-range concerns with hog confinements

Posted June 19, 2014 by iowapolicypoints
Categories: Energy & Environment, Organization

Tags: , , , , ,

A funny thing happened at the public meeting to consider the expansion of a hog operation in eastern Johnson County near West Branch. The operator withdrew his request for a permit.

Residents had been expressing their concerns because of quality-of-life conflicts they see coming if an existing large farm operation is permitted to create a second 2,500-head hog confinement, expanding the operation to nearly 4,900 hogs at that location.

Iowa law has always been most friendly to those who want to locate and operate Concentrated Animal Feeding Operations (CAFOs), rather than to the people who live near them. The state has largely limited county authority over the siting of these operations to just comments, and then only if a proposed confinement is large enough and does not meet enough specific standards for protecting soil, water and air cited in what is termed the Master Matrix.

As a 2008 IPP report showed, the current CAFO permitting process allows scant protection from spreading manure near drinking water sources — in a Dallas County case, near an already impaired river. Even worse as pointed out by Johnson County Supervisor Janelle Rettig at the hearing, if this operator chooses to move his second planned building by a thousand feet, he would not be required to even ask for a permit.

The Master Matrix process is in its second decade and its deficiencies have not been corrected. Even operating normally, CAFOs can create significant water-quality and air quality problems — and when there are spills, as is historically the case, fish kills are one of the impacts.

As our 2008 report recommended, Iowa law should include:

  • Stronger minimum requirements for approval of new construction permits and manure management plans;
  • Real local decision-making authority by allowing counties to set rules to protect air and water quality, public health and community well-being; and
  • Requiring construction permits for smaller facilities — for hogs, half of the current requirement of permits for operations with 2,500 hogs or more.

Most in attendance cheered when, at the beginning of the meeting, it was announced that the request for a permit was withdrawn. However, it might still be built if moved less than a quarter mile. The state needs to change the law to allow for real local control over hog operations.

IPP-osterberg-75  Posted by David Osterberg, Founding Director of IPP


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