A Brief Analysis of One Silly Rationale for Eliminating Federal Deductibility
Eliminating Federal Deductibility, making Iowans pay a tax on a tax, raising taxes on hard working Iowans to the tune of $600 million. The majority of the tax increase will be on Iowans making $125,00 a year , or more. Nothing more than class warfare which attacks the very small business owners who have experienced some success while creating 75% of the jobs in Iowa.
Democrat leaders have explained reducing Iowa’s top income tax rate will make Iowa more attractive to CEO’s in boardrooms across the U.S.A. when deciding whether to move operations to Iowa.
They make this argument even though the truth is, these CEO’s and other executives would likely make at least $125,000 per year. The elimination of Federal Deductibility would make their taxes paid greater. Their effective tax rate would increase.
Any CEO who decides to move their operations to Iowa after effective tax rates for themselves and their executives are increased by a tax and spend Iowa Legislature.
Written by Ed Failor, Jr.
President of Iowans for Tax Relief
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