blake
Life Member
<span style='font-size: 17pt'>PMA Memberships & Renewals </span> and <span style='font-size: 17pt'>IBA Memberships & Renewals</span>
<span style="color: #990000">The following news article is not the typical type of news that I post on IW. However, I feel that this article directly affects most of the members on this website.
This post is intended for informational purposes only and should not be interpreted as any form of political agenda by iowawhitetail.com or any of the IW staff</span>.
<span style='font-size: 17pt'>Plan would raise taxes for one-third of Iowans</span>
Des Moines Register
One-third of Iowans would pay more in state taxes each year, and two-thirds of Iowans will either see no increase or they will get a tax cut under a new tax plan Democratic lawmakers unveiled today.
The state would take in no extra money, Democratic leaders said. It would redistribute money to those who make less than $125,000, they said.
The plan would eliminate federal deductibility, which means Iowans will pay state taxes on the income they use to pay their federal taxes. That would bring in an extra $595 million.
Iowa’s top income tax rate would drop 2 points from 8.98 percent to 6.98 percent. That will trim $590 million in state revenue.
And tax credits would increase for the elderly, working families and the blind. That would cost the state $5 million.
For Iowans whose income is above $125,000 a year, “on average their taxes will increase slightly,” said Sen. Joe Bolkcom, D-Iowa City.
A total of 1,273,974 Iowa households earn $125,000 or less, and 86,052 households make more.
“We want to put money in back the hands of middle-class Iowans, so obviously you’ve got to take that from somewhere,” said Sen. Majority Leader Mike Gronstal. “We are confident the governor believes in a middle class tax cut.”
“We think we’re going to improve the business climate in this state,” said Rep. Paul Shomshor, D-Council Bluffs.
Iowa’s highest tax rate would be more in line with other Midwest states, such as Nebraska’s at 6.84 percent. Right now, Iowa’s tax rate is “artificially high,” appearing to lump the state in with the nation’s highest tax states, Shomshor said.
Republican lawmakers immediately criticized the plan.
“Will it kill jobs? Yes, it will kill jobs,” said Sen. Minority Leader Paul McKinley, R-Chariton. “This is a step in the wrong direction.”
<span style='font-size: 14pt'>Tax impact</span>
Here is the average savings or increase that Iowans would see, based on their income level, if the Democratic tax plan passes this session.
The non-partisan Legislative Services Agency said the plan would reduce total income tax liability, on average, for those earning $125,000 or less. Taxes would go up, on average for those earning more. The average savings based on adjusted gross income would be:
Iowans who earn:
$0 to $10,000: -$3.86
$10,001 to $20,000: -22.15
$20,001 to $30,000: -$35.57
$30,001 to $40,000: -$35.28
$40,001 to $50,000: -$38.82
$50,001 to $60,000: -$39.87
$60,001 to $70,000: -$51.53
$70,001 to $80,000: -$58.84
$80,001 to $90,000: -$62.66
$90,001 to $100,000: -$58.82
$100,001 to $125,000: -$19.90
$125,001 to $150,000: $45.55
$150,001 to $175,000: $131.28
$175,0001 to $200,000: $199.06
$200,001 to $250,000: $261.44
$250,001 or more: $1,377.28
PM
Ron Wyllie
Southwest Iowa IBA Area Representative
rwyllie@iowawhitetail.com
