Don’t let anyone fool you, the Democrats plan to “simplify” your taxes is nothing more than a money grab. Do you really think they are going to simplify and lower tax rates at the same time they are having to make additional cuts to every governmental agency? Me neither.
By eliminating your federal deductibility deduction, Democrats will be able to generate $600 million in additional revenues, meaning they only need to find another half billion or so to make the books balance in fiscal year 2010. The Iowa Republican also learned from capitol insiders, that the 2011 budget looks like it could be even worse that the 2010 budget.
Republicans are united in their outrage over the Democrat’s proposal.
Senate Republican Leader Senator Paul McKinley:
“There are over 80,000 Iowans who are unemployed and Iowans are financially hurting, but the governor and legislative Democrats only seem interested in piling on more financial burden by significantly raising taxes to pay for their uncontrolled spending addictions. As a result of spending the last two years growing government by 21 percent and spending nearly a billion new dollars, the governor and legislative Democrats are now scrambling to find any new ways to redistribute money from hardworking Iowans to fill their hundreds of millions in self-inflicted deficits,” said McKinley.
Republican Party Chairman Matt Strawn:
“Majority Democrats share Governor Culver’s basic inability to understand who actually creates jobs in this state. Jobs are created by entrepreneurs, investors, and those willing to risk their own capital. The Democrats’ plan to eliminate federal deductibility will raise state income taxes by nearly 7% on tens of thousands of these very people,” said Strawn.
Republican Gubernatorial Candidate Bob Vander Plaats
“The Democrats’ plan to get rid of federal deductibility has nothing to do with reform and everything to do with generating more revenue to fuel their overspending. They talk about it being ‘revenue neutral’ but the fact remains that Iowans aren’t going to be treated equally. Instead, the Democrats are intent on picking winners and losers – and, in the end, Iowa is going to be a loser because we’re going to see more and more successful individuals, businesses and industries leave our state,” said Vander Plaats.
House Republican Leader Kraig Paulsen
“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 Paulsen.
“In reality, this is a major tax increase. 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,” Paulsen added.
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