The Des Moines Register from Des Moines, Iowa • Page 2

tATHE Pes Moines Rkcistek Wepveshav. March 5. 1W7 For the House OKs cut in income-tax rates Record A request for memorial is puzzling TAXES AND THE ECONOMY How the states taxes compare: CORRECTIONS AND CLARIFICATIONS A Metro Record Item Tues- SERVICE IfJ -V COWJJC L'nemplovmenl gtmimiesi 3.6 17 3.3 22 day about Antone "Joe" Alber, Tax burden per person $1,549 2,021 252 1.173 2 hoyteh Income $35,519 37.933 nr rrn 43,924 34,076 who is to become the dean of Drake University's College of Continued from Page 1A 1 -7J' 1 I Iowa Minnesota S. Dakota New Jersey U.S. average Business and Public Administra- c.a i ro I i 5.9 25 AO OAO I I night while an Urbandale officer waited inside.

Des Moines police said 1,522 there was no evidence Bloomquist i 51 'SO-'95 job. growth ikii, un.wTw.-uy saju mat ne was a former professor and interim associate provost at Bradley University in Peoria, I1L He currently holds those jobs, and will take the Drake position July 1. A front-page article Tuesday Iowa '91-'95 household income gowirt 11 15 7 -2 1 Minnesota 26 t.V 30 yr 32 Jy- 23 CO LA South Dakota New Jersey United States had committed a crime but they wanted to talk to her. Urbandale police wanted to question her in connection with the alleged theft of $2,000 from the Howard Johnson Hotel at 4800 Merle Hay Road. The question of why she requested the service had everyone scratching their heads.

Here is what preceded Tuesday night's events, according to Cade: On Jan. 7, a woman identifying TAX Continued from Page 1A tion, but they have not settled on a percentage figure. Gov. Terry Branstad said Tuesday that he would sign the House bill, even though his recommendation to the Legislature was for an initial tax cut of 10 percent, to be followed by an additional reduction of up to 5 percent if state revenues continue to exceed projections. "I believe the taxes are too high and need to be reduced across the board," Branstad said.

Most House Democrats, after arguing for an alternative proposal to cut income taxes, joined House Republicans in voting for a 15 percent rate cut "It's not as good as our plan, but it shows our commitment to cut taxes," said Rep. Michael Moreland, D-Ottumwa. Two-Part Plan Under the Democrats' two-pronged proposal, the deduction allowed on state tax returns for payment of federal income taxes would be eliminated, but that would be offset by a reduction in tax rates. The Republicans' plan would not eliminate "federal deductibility." Like the Republicans, Democrats included incorrect information jjfXrom the Iowa Department of Jfublic Health about programs to help parents of newborns. The SOURCE Bureau o( Economic Analysis Bureau ol Labor Statistics, Census Bureau.

Iowa State Urwversity, Northeasl-MxJwest inswute 1 1 1 believe the taxes are too high and need to be reduced across the board. TT Governor Tern' Branstad program, called Hopes, conducts hospital risk surveys of newborns and their families and conducts follow-up home visits. The program exists in Hamilton, Scott, S.XITT KAVKXTllf. KWilsTKK Fallon of Des Moines and Minnette herself as Bloomquist contacted him. Wapello, Buchanan, Woodbury She said she was raised Greek Orthodox in Dubuque and moved to the Des Moines area some 10 to 12 years Folk counties and had a budget the last fiscal year of $335,000.

A similar program has ago. She said she was married and had a couple of daughters who had been baptized Greek Orthodox. The woman told Cade that she was Doderer of Iowa City voted against the proposed 15 percent income-tax cut. Fallon warned that the state would not be able to afford a cut of that magnitude. "We're going to plunge ourselves back into the red.

I think we're living in la-la land here today," he said. operated in a few other areas through Lutheran Social Services. Th Kumm ftmn tor acoracy and Imr-Qes Errors ih news cownDe corrected irwi xac Readers oeev me Daoer I going through some difficulties and Jarred may request a correction teiephonng talked about her situation and she wanted to participate in the life of the church," Cade explained. "I gave Doderer said the state should be retiring government debt and fixing i in iu iiipip i ii mi i i i t. if i LOTTERIES up crumbling buildings.

She said members of both parties, with an eye on the next legislative al tax payments is popular with Iowans. He warned that eliminating the deduction would be seen "as a step backward in protection for the taxpayer." Democrats were angered by a parliamentary ruling that cut short debate of their proposal. Republicans maintained that cutting tax rates by 15 percent is the fairest way to reduce income taxes. "Taxes would be reduced in the same proportion that they are paid," said Rep. Gary Blodgett, R-Mason City.

"Higher-income people would continue to pay considerably higher income taxes." Rep. Donna Barry, R-Dunlap, said the GOP tax-cut plan would help families stretch their budgets for clothing, vacations and other items. Nearly Unanimous Although the tax debate was punctuated by charges of "risky tax schemes," "voodoo economics" and "parliamentary trickery," the final vote in favor of the bill was nearly unanimous. Only Witt and Reps. Ed Iowa Lottery Tuesday's $100,000 Cash Game: elections, were bidding up tax cuts.

"8-13-21-25-26 Tuesday's Daily Millions: Representatives of human-needs advocacy groups held a press confer Red: 11-17 her some literature to look at. He said he didn't hear from her again until late Thursday. "She called me at my home, and it sounded like she had been crying," he said. "She said she was in Lombard, 111., and that her youngest daughter, Katie, had died. She had just come back from the funeral and asked me if I could do a memorial service on March 4.

1 agreed and asked if there was anything else I could do for her. She said she would see me at the 20-21 ence Tuesday to protest the plan, saying it would benefit the wealthy would have lowered taxes by about J300 million. But in contrast to the Republicans' uniform cut in all tax brackets, they would have given a bigger cut to households with annual incomes of 175,000 or less. "We believe the Democratic alternative offers a solution to what is broken in Iowa's income-tax structure today," said Rep. Bill Bemau, D-Ames.

Middle-income taxpayers are paying more than their fair share of taxes, he said, and Iowa is perceived to be a high tax state, which hurts its business climate. Rants said the deduction for feder- Blue: 12-17 at tne expense or poor people. "A 15 percent cut translates into a loss of 1300 million in state revenue, crippling any hope for true welfare reform and leaving the state ill It's not as good as our plan, but it shows our commitment to cut taxes. Rep. Michael Moreland equipped to address future needs," said Lloyd ugle, a spokesman for the 7a Mtuouri Tuesday's winning numbers: Show Me 5 6-19-22-24-30 rV3-X-8 I Miwictvtj Tuesday's winning numbers: Gopher 5 -1-6-7-28-31 Wisconsin Monday's winning numbers: SuperCash 3-9-13-23-24-28 Iowa Coalition for Housing and Homeless.

The next day, an obituary advertisement appeared in The Des Moines Register. It said, in part, "Me morial Services for Katherine (Katie) M. Heinmann, eight-year-old daughter of Grace Heinmann of Des Moines The Iowa House aDoroved a $300-million cut in statu inromn tas What does low tax burden mean to state's economy? Here are highlights of the plan, which now will be considered by the Senate READER'S GUIDE and William Heinmann of Lombard, 111., who died Wednesday at Univer sity Hospitals of encephalitis, will be held at 7:30 p.m. Tuesday evening at HAVE A NEWS TIP? STATES St. George Greek Orthodox Church in Des Moines "It said memorial Call: THE NEWS contributions could be made to Blank Children's Hospital.

Personal income-tax rntes would he reduced by a uniform 15 percent. Currently, tax rates range from 0.4 percent to 9.98 The new rates would range from 0,34 percent to 8.48 percent. Tax revenues going to the state general fund would be reduced bv about 300 million annually. Republican backers of the bill contend the blow to the state treasury would be less than that, because cutting taxes would stimulute growth in the state's economy. The tax cut would take effect Jan! 1 and apply to 1998 tax returns.

"U.S. Cellular customers can call in news tips FREE of charge UWTES STATES Although the ad did not state which university hospital the death Continued from Page 1A lem," said Taylor. Another Iowa neighbor, South Dakota, has the lowest state and local tax burden in the region, just $951 per person in 1995. It has no state income tax and ranked 24th nationally in sales-tax burden and 27th in property-tax burden. Its unemployment occurred at, Cade said Bloomquist told him the death happened in Iowa City.

General Dumber (515) 284-8000 SUBSCRIPTION PRICES On Saturday, Cade got a call from Here are examples of how the House Republican plan would change the tax bills of three Iowa households. DailySunday (by carrier) $3 SOwk someone at the Howard Johnson Hotel. According to a Des Moines police report, the caller said she was Dairybunday (by motor route) 3 6b' wk only (by earner) i 00- wfc Daily only (by motor route) 12 1 bwk SunaayorWy $175 wk suspicious of the reported death and indicated Bloomquist was a possible suspect in an embezzlement Married couple $40,000 income Married couple $60,000 income Married couple $100.000 income part make up for its cost. So long as spending is held in check, he said, the cut can easily be paid for. Underlying the plan is the belief that taxes are a drag on the economy and that cutting them would prime the economic pump.

"States that have reduced taxes the most are the states that have grown the most," said Corbett, citing a Cato Institute study. In New Jersey, where the state tax -cut movement started with the election of Gov. Christine Whitman in 1993, the economy is getting better, but not enough to balance the budget without some creative accounting. Whitman is running for re-election this year, and Rutgers University political scientist Stephen Salmore said she is popular more for having kept her promise to cut taxes by 30 percent than for any economic benefits resulting from it. "The job growth has not been what she promised." said Salmore.

"She had promised 450,000 jobs, and it's closer to 150,000. But the state economy is really hostage to the national economy." To balance the budget this year, Whitman is proposing to sell a $2.9 billion bond to pay off the STIjr Des ffloincs Register Cade called funeral homes in Iowa A GANNETT NEWSPAPR and Illinois. He called offices of medical examiners and county coroners Monday tfir xh Saturday 5 WJiritS Ktb'MtN 3 TRIBUNE COMPANY SOURCE: Legislative Fiscal Bureau in both states. He contacted Univer 2 5 LOCUST STREET JiES MOINES. IA 50309 TIIK REGISTER 148 No 2J8 sity Hospitals in Iowa City.

He talked to editors at newspapers in Des Moines and Illinois. fMarch 5. 1997 Said Rolnick, "I would think the lower-tech companies are going to be '4 Officers and Department Heads He could find no evidence of the mnuenced Dy tax rates, and the ame MesidenianaPubfcsher (515)284041 KfjpnnitR. Ryereon death of the girl. is just z.i) percent.

However, South Dakota's median household income was $29,578 in 1995, well below the national median. And despite its attractive tax structure and impressive growth in jobs, household incomes there have not grown nearly as fast as in neighboring states. They actually lost ground from 1994 to 1995. Like its neighbors to the north and northwest, Iowa is relatively flush right now. The state has strong job growth, and the December unemployment rate was 3.6 percent.

The state is betting that moving its tax code in the direction of South Dakota will move its economy toward that of Minnesota. Iowa is sitting on a $900 million budget surplus, proportionately one of the largest in the country, and revenue is ahead of projections. "We're drawing down from that surplus to cover the tax cut," said Iowa House Speaker Ron Corbet t. Based on studies by supply-side figure Arthur Latter, the conservative Heritage Foundation and the Cato Institute, Corbett is betting that a tax cut will give a boost that will in Police said they believed that the cotot (Dl 31 TO-eDU ffFenundo A. FMtet lJ.D Duai woe Id dOC Grace Bloomquist in this case was the same one who has been in the Gvfce Prewoent.

Marketing (515)284-8281 POjbbkf i Holzkamp Presoent. Adverting (515)284-8070 Austin Ryan KJvicePresKJent. Production (515)284-8344 news several times in the past, mainly in theft cases. as much as the act of cutting them that spurs growth, said John Davis, an aide to Corbett. The opposite view is that states define themselves by the services they offer.

"Taxes serve a purpose," said Rol-nick of the Minneapolis Federal Reserve Bank. "They provide public goods: schools, roads, safe streets." Both Rolnick and Taylor argue that what varying tax rates really lead to is a sorting out of people and businesses based on their priorities. "There are people in this world who like to live in low-tax, low-service places, and there are people who like to live in higher-tax, higher-service places," said Taylor. State records indicate she has been MSutan a mnn Svice President Finance (515)284-8206 nities aren going to mean much." He added: "Iowa is going to have to decide what kind of business environment it wants. You might get real low taxes and low infrastructure and get lots of firms you don't like: those that pollute; those with lower-paying jobs." Corbett said Iowa is hardly engaging in a bidding war on tax rates, nor is it starving state services.

"Our goal Isn't to be a South Dakota," he said. But he believes voters made a clear choice about the kind of government they want. pTerTy Thompton convicted of one count of first-degree theft, three of second-degree theft and one of false use of a finan wee Prescient. cremation (515)2848310 cial instrument. state pension fund obligation.

The plan would give the state an immediate $623 million accounting lift. Iowa's tax-cut plan entails no such gimmick or risk. It is influenced in part by the supply-side ideas now popular in state capitals. It's not the rates themselves Suggested Retai Prices Dealer and vendor (single copy) .35 Carrier (foot) Iowa 6 days S2 00 wk. 3 Motor route (metro) 6 days $2 lbVwk.

bus mail (m Iowa) $3 1 5'wk. US. man (outside Iowa) $4 50Vwk. Officials said Tuesday that Bloom quist is wanted in Warren County on a contempt-of-court charge related to one of the cases. The Des Moines Register is distributed by the Des Moines Register and Tribune Company and by independent contractors In areas served by independent contractors, prices may vary from the suggested retail pnees since independent contractors establish their own pnong policies.

The Des Momes Register (USPS 1 54-760) is published daily except Sunday for $1 17 per year (loot earner) by the Des Moines Register and Tribune Company. 71 5 Locust Street. Des JPeopile Moines la 50309-3724 Periodicals postage 1 i-rkjiigi MHWVivwnivt iu nie iZ Des Moines Register. Circulation Department. KDl Dn OA7 1W Uu.

CS13YA-nQC7 I 1 In the News The Associated Press entitled exduvvety to I the use or reofoductort of aW tocai news printed -n this newspaper I .1 tJ 7J VB5 1 I n. Short takes Macaulay Culkin can use some of his 17 million fortune to keep his family from home-lessness, a judge ruled Tuesday. New York State Supreme Court Justice David Saxe also removed the young actor's warring parents as guardians of his property and replaced them with Macaulay's choice, his longtime accountant Billy Breitner. Saxe said Christopher "Kit" Culkin, 62, and Patricia Brentrup, 42, who have six other children, were unable to pay the rent on the family's three apartments. "The parents' finances are currently so poor that there is a real possibility of this millionaire and his family being evicted and left without any home." Ronald and Nancy Reagan celebrated their 45th wedding anniversary Tuesday with plans for a private dinner at their Bel-Air home.

"It doesn't seem like 45 years, 45 minutes maybe, but not 45 years," Nancy Reagan said. lames Cromwell, who co-starred with a pig in Babe, helped save a 240-pound hog from the butcher block and plans to give it a new home. The pig, named Dragon was raised as a 4-H Drtt hv You guessed it: Beavers in the news Small Coffee JCP BURGER 1 i If IMG Soon to be a snack Zoologist Werner Croocamp lets a scorpion crawl on his face at the Johannesburg Zoo on Tuesday. The exhibition of insects and arachnids has been a big hit with South African schoolchildren, but it will end Sunday with a bug barbecue. Visitors will be invited to taste termites or munch on Those elusive creatures are back in the spotlight Natty naturalist Prince Philip, above right, makes a cutting remark about a fur-bearer as Austrian scientist Franz Brat- ter prepares to release it Monday in a Hungarian forest.

Beavers have been killed off in Hungary. Philip, the husband of Queen Elizabeth II. is honorary president of the Worldwide Fund for Nature. Mean i I I i 1 1 i .77 pat pat.j Des Manes bnit one ca. per per Cu'SJoner.

tot rc De used rn ry crr 5.1297. i i while, in the wilds of Beverly HilK Jerry "the Beav" Matbera and an unidentified date arrive at the opening reception of the William S. Paley She's busting with pride "Even though it's controversial, I'm honored. There's no such thing as baaaad publicity." Dolly Parton, on her ckmed-sheep namesake. Dolly, whose DNA came from an udder.

Scottish revarcherj said they paid tribute to Parton because "No one could think of a more impressive set of mammary glands." (Djf tics JBxnxies dents at Hillcrest High School in Ocala, Fla. He was auctioned off at a fair last week People for the Ethical Treatment of Animals bought Dragon from the new owner, and Cromwell asked to adopt him Television Festival on Monday. The festival, from March 4-1 5. salutes the history of programming. i.