TAX NEWS - JUNE 2010
Iowa Tax: Will tax credit issue hurt Roxanne Conlin? Mason City Democrats ponder
"I thought, 'Here we go again,'" said Lorge, of Mason City.
Lorge remembered how Conlin's campaign for governor in 1982 was harmed by allegations she failed to pay state taxes, when in truth what she owed was erased by her federal tax liability.
"That was awful last time," Lorge said tonight.
Lorge worries what this latest news will mean for Conlin, who is in a three-way primary battle for the opportunity to face Republican U.S. Sen. Chuck Grassley.
"It will hurt her, I think, a little bit," Lorge said.
Conlin told an audience of about 80 people at a Mason City bowling alley tonight that she hopes Iowans aren't misled by the tax credit issue.
The Des Moines Register reported this morning that Conlin, who has campaigned against tax breaks that benefit wealthy Americans, is a part-owner in 27 low-income apartment complexes that were financed through the sale of millions of dollars in federal tax credits.
The rental developments, all located in the Des Moines metropolitan area, were built over the past 19 years using $64.2 million from federal low-income housing tax credits, the Register found after a review of state and federal records.
Conlin, a Des Moines lawyer, told the Mason City audience: "I know people might think just from reading the headline that I took $65 million from the federal government and nothing could be further from the truth."
Conlin explained that she and her husband, Jim, who runs the family's company, Conlin Properties, sold the tax credits to banks and other buyers to finance construction. The properties are not owned by the Conlins, but by partnerships which the couple have, on average less than a .01 interest, she said.
"I'm saddened that people may be misled, but I'm very proud of what my husband and my family have done to house people and create jobs," she said.
Since 1991, those projects created about 2,400 jobs, mostly in construction, she said. And the result was "very nice places where people can live safely and with dignity," she said.
Conlin said she opposes income tax cuts that benefit the top 1 percent of the wealthiest earners. In contrast, she supports tax credits that help small businesses, manufacturers and housing programs create jobs.
"Comparing our being a funnel for tax credits with tax breaks that go directly into the pockets of the wealthy – that's an apples and oranges comparison," she said.
Conlin said both Grassley and Iowa Sen. Tom Harkin, a Democrat, voted for the federal low-income housing tax credit program that began in 1986.
Several people who attended a Conlin rally tonight shared reaction to today's news.
Bill Christie of Garner hasn't decided who he'll vote for in Tuesday's primary.
As for the federal tax credit program, Christie said: "It was created for rich people, rich Republicans, that I wouldn't doubt are getting the same kind of stuff. If the Conlins make a little bit of money, it's not their fault. They're just trying to make an honest living, too. It'd be pretty much foolhardy to avoid things like that."
Crystal Meier, a program director for a nonprofit who lives in Mason City, said: "People should not be penalized for taking advantage of legal tax credits and legal portions of the tax code."
Meier added: "I read the headline and thought, 'Anything we can do to put affordable, safe housing at the disposal of Iowa families is a great thing.'"
Paul Jensen, a teacher, and his wife, Deb Jensen, a registered nurse, hadn't heard about the tax credit issue.
"My first reaction is that I don't see anything wrong with it but I don't know the details," said Paul Jensen, of Forest City.
State Rep. Sharon Steckman, D-Mason City, said she doubts the issue will hamper Conlin's victory on Tuesday.
"No," Steckman said. "I hope not."
© 2009-2012 TaxRates.cc
2011 - 2012 Tax Rate Guide and Tax Help Website
