Happy Tax Day, Iowa!
House Republicans have been working this session to reduce Iowan’s tax burden, simplify the tax code, and make it more fair for all taxpayers.
From the Des Moines Regsiter
Highest
Categories where Iowa places in the top half of states for highest taxes.
NO. 1 HIGHEST: Iowa’s corporate income tax system consists of four brackets, with rates of 6 to 12 percent. The top rate ranks highest among states levying a corporate income tax. But citing the top rate is misleading because what corporations actually pay — after deductions and credits that reduce the effective tax rates — is much lower than in other states, said Mike Owen, assistant director of the Iowa City-based Iowa Policy Project. Iowa tumbles to the bottom third of states when you look at corporate taxes collected per person. Iowa collected $82 a person in 2011, which ranked 14th lowest nationally.
See where else Iowa ranks here…
Today is Tax Freedom Day. This is the day when Iowans finally have earned enough money to pay off their total tax bill for the year. This includes tax bills at the federal, state, and local levels. In 2013, Iowa taxpayers worked until April 9th (17th earliest nationally) to pay their total tax bill.
According to the Tax Foundation:
- Individual income taxes represent the largest component of Americans’ tax bills. All but seven states levy a state income tax on top of the federal income tax. Paying these taxes together takes Americans about 40 days of work.
- Americans will work 25 days to pay their payroll, or social insurance, taxes—those taxes dedicated to funding social insurance programs such as Social Security and Medicare.
- Americans will spend 14 days working to pay sales and excise taxes, 12 days to pay property taxes, and 7 days for other miscellaneous taxes (such as car taxes, severance taxes, and estate taxes).
- Americans will work 9 days to pay their share of corporate income taxes. This figure peaked, along with corporate profits, in 2006 at 14 days, and dropped in half by 2009 to 7 days. All taxes on businesses are ultimately passed on to individuals in the form of higher prices, lower wages or employment levels, or lower share value.
- Americans will spend more in taxes in 2013 than they will on food, clothing, and housing combined.
House Republicans are working, and will continue to work, to decrease Iowan’s tax burden. This year House Republicans passed House File 478, which would decrease income taxes on half a million Iowans.
To see the Tax Foundation’s full report, click here.
From The Gazette (3/4/2013)
By James Q. Lynch
DES MOINES – Burger King franchisee Randy Bradley has to sell more burgers and fries in Ottumwa than at his Missouri restaurant to satisfy the property tax appetite of local government.
Although the two Burger King buildings and lots are the same size, Bradley told a House Ways & Means Subcommittee Monday it takes $130,000 more in sales in Ottumwa than Kirksville to cover property taxes. His bill was about $11,500 in Kirksville, but more than $37,000 in Ottumwa.
“If I can’t do $130,000 more in sales, I need to be in Missouri,” Bradley said.
Read more »
Rep. Baltimore (R-Boone) on the House Floor
Today, House Republicans passed House File 478, a bill that leaves more money in Iowans’ pocketbooks and reduces Iowans’ income taxes.
The bill gives Iowans a choice when paying their income taxes, either the current system or a 4.5 percent flat tax with zero deductions or credits. No one will pay higher income taxes under this plan. Additionally, it raises the filing threshold so that the first $6,235 (or $12,450 for married couple) would not be taxed.
“House File 478 not only cuts Iowans’ taxes, it makes our tax system simpler, flatter, and fairer,” said House Majority Leader Linda Upmeyer (R-Clear Lake).
The nonpartisan Legislative Services Agency (LSA) predicts that with the House proposal, close to 492,000 taxpayers will see their taxes reduced. With the flat tax option, the greatest number of taxpayers who benefit fall in the $30,000 to $40,000 income bracket.
Read more »
House File 3, which creates an alternative flat tax equal to 4.5%, passed the House Ways and Means Committee last week on a party line vote. Iowa’s current income tax system has nine brackets and allows filers numerous deductions. This bill creates an alternative system, a simple flat tax with zero deductions, giving taxpayers a choice between the old or new system.
Read more »
Rep. Grassley speaking to College Republicans about their over-collection of cupcakes.
Today was the Iowa Federation of College Republicans Day on the Hill. 20 College Republicans from throughout the State came to the Capitol to meet with Auditor Vaudt, Secretary Schultz, Governor Branstad, and several Republican Legislators.
From 1:30-3:00 p.m. the College Republicans handed out an over-collection of cupcakes that they had accumulated to passersby. Their reasoning was to promote returning this year’s $650 million tax over-collection to Iowans. “We must stop the practice of using one time surplus money towards new wasteful bureaucratic programs. It is unsustainable and insulting to the taxpayers of Iowa,” said John Kaufmann, Chairman of IFCR.
Many Republican Representatives stopped by this afternoon to pick up a treat and support the message. Pictured is Representative Pat Grassley speaking to IFCR Vice Chair Tori Hurst From the University of Northern Iowa.
Taxes | ctadlock | April 15, 2013 | 
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