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April 2012 Policy Study, Number 12-5


The Negative Consequences for Iowa of an Enterprise Value Tax





[1] “The American Jobs Act,” President Obama’s legislative proposal to Congress, submitted 12 September 2011, p. 141, accessed 13 January 2012.
[2] “The Taxation of Carried Interest,” Testimony of Peter R. Orszag, Director of the Congressional Budget Office, before the Committee on Ways and Means, U.S. House of Representatives, 6 September 2007, accessed 13 January 2012.
[3] Hazel Bradford, “Obama’s proposed enterprise value tax has managers worried,” Pensions & Investments Research Center, 14 November 2011, accessed on 12 January 2012. As originally written, the tax would have gone into effect if there was even $1 of carried interest! Pushback against this draconian proposal resulted in the more “moderate” current version. For a more detailed discussion of these issues, see: percent20PDF percent20- percent20PRINTING percent20ALLOWED percent20 percent20Tax percent20Notes percent20(Carried percent20Interest percent20Legislative percent20Proposals_ percent20Levin) percent20Nov. percent202010.pdf.
[4] Nansen Malin, “Meet the Enterprise Value Tax: Pit-stop on the Road to Higher Capital-gains Rates,” posted on NW Daily Marker, 1 December 2011 accessed on 12 January 2012.
[5] J. Scott Moody, “The Economic Impact of an Enterprise Value Tax,” Washington Policy Center Policy Note, November 2011, p. 1
[6] Alan Patricof, “Unintended Consequences of the Enterprise Value Tax,” posted to Huff Post Business, 18 June 2010, accessed on 12 January 2012.
[7] Ibid.
[8] Bradford, p. 3.
[9] Donald P. Racheter, Iowa Government and Politics, Octagon Press, Muscatine, IA, 2010 edition, p. 32.
[10] Dave Swenson and Liesl Eathington, “Multiple Measures of the Role of Agriculture in Iowa’s Economy,” accessed on 24 January 2012.
[11] Michael Duffy and Willy Klein, “Farmland Value Reaches Historic $6,708 Statewide Average,” accessed on 24 January 2012.
[12] 2000 Statewide average, all grades of land, Iowa State University Extension and Outreach Land Value Survey; accessed on 24 January 2012.
[13] “Warren Buffett offers to match GOP gifts to reduce the national debt,” Omaha, Neb, Associated Press report in The Cedar Rapids Gazette, 12 January 2012, p. 7 A.
[14] See <> for details. Accessed on 12 January 2012.
[15] Patricof.
[16] David G. Tuerck, Paul Bachman, and Frank Conte, “The Enterprise Value Tax: What it Means for the Massachusetts Economy,” Beacon Hill Institute Policy Study, December 2011, accessed 13 January 2012.




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