To feed their insatiable appetite for spending and increased government, Democrats today rolled out their plan to eliminate Iowans’ largest tax deduction, federal deductibility.
“At a time when Republicans are standing for truth and transparency, liberals are trying to trick Iowans into believing they’re going to get a tax cut,” said House Republican Leader Kraig Paulsen (R-Hiawatha). “In reality, this is a major tax increase.”
Because of the Democrats’ plan, beginning in 2010 when the federal tax cuts expire, middle class Iowans see will more than a $100 jump in their state tax bills.
Democrats claim that eliminating federal deductibility will allow Iowans to pay their bills, pay for college tuition and cover day-to-day expenses. According to their own math, however, it will result in only an extra 17 cents a day for the average Iowan.
“17 cents a day will do nothing for middle class Iowans or small businesses who are feeling the pain of this recession,” said Paulsen. “Republicans stand ready to cut taxes for hard-working Iowans by far more than 17 cents a day.”