News Center

March 25th, 2009

Democrats Poised to Pass $600 Million Tax Increase

Democrat leaders in the Iowa House and Iowa Senate, along with Governor Culver are all in agreement that they want to prevent Iowans from ducting all of their tax payments to the federal government on state income tax returns. This is commonly referred to as federal deductibility.

The removal of this deduction means a tax increase on Iowans to the tune of $600 million.

The move comes just days after the Revenue Estimating Conference told lawmakers that they need to cut an additional $130 million from the current budget. Making matters worse, the state has to deal with a $1.1 billion gap between expenses and revenues over the next 15 months. Many believe that Democrat legislative leaders are making a money grab to help solve the huge budget mess they have created by overspending.

In an interview with Mike Glover or the Associated Press, Speaker of the Iowa House, Pat Murphy said, “Ending the deductions would bring in hundreds of millions of dollars that would enable the state to reduce tax rates for most Iowans.” In other words, Murphy wants to raise taxes to lower taxes.

Ed Failor, Jr., President of Iowans for Tax Relief, told The Iowa Republican, “Be critical of what you hear come out of their mouths. They will talk about rate reduction, equity, and revenue neutrality. It is all a smoke screen for a $600 million tax increase on all Iowans.”

Failor states that by eliminating federal deductibility, Democrats will hurt lower and middle income Iowans who rent their homes, as these people can’t deduct mortgage interest or property taxes. Failor claimed that removing federal deductibility would “take away their largest tax deduction.”

Failor and Iowans for Tax Relief are ready to unleash a direct mail, radio, and television campaign to urge Iowans to help them stop the Democrats’ latest tax increase.

“It is incomprehensible that Democrat leaders are willing to force all Iowans to pay a tax on a tax. These Democrats find it reasonable for the State of Iowa to tax you on the money the federal government withheld from your paycheck – money you never had in your wallet,” Failor concluded.

Click here to read Failor’s op-ed on federal deductibility from earlier this month.

About the Author

Craig Robinson
Craig Robinson is the founder and editor-in-chief of, a political news and commentary site he launched in March of 2009. Robinson’s political analysis is respected across party lines, which has allowed him to build a good rapport with journalist across the country. Robinson has also been featured on Iowa Public Television’s Iowa Press, ABC’s This Week, and other local television and radio programs. Campaign’s & Elections Magazine recognized Robinson as one of the top influencers of the 2012 Iowa Caucuses. A 2013 Politico article sited Robinson and as the “premier example” of Republican operatives across the country starting up their own political news sites. His website has been repeatedly praised as the best political blog in Iowa by the Washington Post, and in January of 2015, Politico included him on the list of local reporters that matter in the early presidential states. Robinson got his first taste of Iowa politics in 1999 while serving as Steve Forbes’ southeast Iowa field coordinator where he was responsible for organizing 27 Iowa counties. In 2007, Robinson served as the Political Director of the Republican Party of Iowa where he was responsible for organizing the 2007 Iowa Straw Poll and the 2008 First-in-the-Nation Iowa Caucuses. Following the caucuses, he created his own political news and commentary site, Robinson is also the President of Global Intermediate, a national mail and political communications firm with offices in West Des Moines, Iowa, and Washington, D.C. Robinson utilizes his fundraising and communications background to service Global’s growing client roster with digital and print marketing. Robinson is a native of Goose Lake, Iowa, and a 1999 graduate of St. Ambrose University in Davenport, where he earned degrees in history and political science. Robinson lives in Ankeny, Iowa, with his wife, Amanda, and son, Luke. He is an active member of the Lutheran Church of Hope.

blog comments powered by Disqus