Democrats to Eliminate Iowans’ Largest Tax Deduction

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.”