Jack Hatch in The Associated Press

On Corporations: Focus on small business, not tax incentives to corporations

Hatch questioned tax cuts the state gave to a fertilizer plant that located in southeast Iowa, asking "why are we giving these kinds of incentives to corporations, instead of looking where job growth really is, it's in the small towns, it's in the small businesses."

Branstad argued that the deal created jobs for state residents. He also attacked the fiscal policies of the previous Democratic governor, seeking to tie Hatch to a leader that he said didn't balance the books.

On Jobs: Raise the minimum wage & cut middle-class taxes

Hatch sought to criticize Branstad's administration over a recent revelation that some former state workers were given confidential settlement payments. He also promised to cut taxes for the middle class, raise the minimum wage and increase the state gas tax to fund infrastructure spending. "There needs to be new leadership and there needs to be a fresh start in education and job development and taking care of rural Iowa," Hatch said.

Branstad said he wanted to come up with a plan for repairing crumbling bridges and roads that didn't include raising the gas tax, which he said would hurt poor Iowans.