Gov. Terry Branstad's plan for a steep increase in the tax on casinos will not even be discussed as lawmakers negotiate over a new state budget and end this year's session later in the month, top Republican and Democratic legislative leaders said.
"As far as the Senate is concerned, we are not particularly interested in raising taxes," said Senate Majority Leader Michael Gronstal, D-Council Bluffs. "We're a little surprised that the governor recommended a tax increase and were also a little surprised he's going to single out a single industry for tax increases so he can give breaks to other industries."
"The only gambling discussion that's taking place right now is in the Senate," said House Speaker Kraig Paulsen, R-Hiawatha.
The tax rate on most casinos is now 22 percent, with a couple paying 24 percent. Branstas proposed increasing the rate for all to 36 percent, which would bring in roughly $200 million. That's the amount of money he needs to find to pay for cutting the corporate income tax rate in half.