JOHNSTON, Iowa (AP) — Democrats in the Iowa Legislature are offering a $200 million cut in business property taxes and are willing to negotiate with Republicans on an even larger reduction, the Senate Democratic leader said Friday.
Majority Leader Michael Gronstal of Council Bluffs said during a taping of the Iowa Public Television program, "Iowa Press," that while a sizable business tax cut would have to come over a number of years, his party is willing to take the first step.
"Everybody agrees we need to do something about it, and we're willing to put some real money on the table," Gronstal said. "Often around here, the best approach is to take one step and one step usually leads to a second step and a third step. Let's take a step this year on the pieces we agree on and we can decide how that's working and decide if it's working the way we want."
Gronstal said Democrats agree with Republicans that commercial property taxes are too high. He favors cuts targeted at small business and argues GOP proposals would mainly favor large, out-of-state companies by cutting taxes across the board.
Republicans counter that all businesses deserve a tax cut.
Tim Albrecht, a spokesman for Gov. Terry Branstad, said the governor "is anxious and willing to work with Senate Democrats" to strike an agreement on cutting business property taxes.
"We are pleased Sen. Gronstal is committed to lowering Iowa's uncompetitive commercial property taxes to spur economic expansion in Iowa," Albrecht said.
During the taping, Gronstal made it clear that any changes made this year will be debated again later.
"We aren't Moses and the Ten Commandments," he said. "We aren't casting these things in stone."
Both Republicans and Democrats will have to compromise in the deeply divided Legislature if anything is going to be accomplished, Gronstal said. Republicans run the House on a 60-40 margin, while Democrats control the Senate 26-24.
Gronstal said voters are likely to punish both parties if they come to gridlock.
"I think it's bad for both of us," he said. "I think we ought to figure out a way to work together and find common ground."
On another issue, Gronstal said there's some interest from both parties in increasing the state's fuel tax, but the fate of that effort is yet to be determined. Branstad has said he doesn't favor a fuel tax increase but hasn't threatened to veto if should one land on his desk.
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