Over this past weekend ,we were told that Democrats in the legislature and Governor Culver had come to an agreement of the repeal of federal deductibility. It’s now mid-week and legislative Republicans know very little about the plan, and the people of Iowa are totally in the dark.
We are told that the compromise plan would lower all tax rates or increase the standard deduction for every taxpayer. What has me concerned is that when the Democrats rolled out their original proposal they claimed that it was revenue neutral and taxpayers in the lowest tax brackets would receive a tax cut. The media took the Democrats at their words and proclaimed the bill as revenue neutral. They were wrong.
When I heard that legislative Democrats and Governor Culver had come to an agreement, I thought that maybe this new plan would not increase taxes on hard working Iowans. But after Culver’s flip-flop on gay marriage, I’m not too confident that he will uphold his no taxes pledge.
I think it is very telling that we have not seen the details of the new federal deductibility proposal yet, or even know when it will be debated. I’ve been told that there is a good possibility that the Democrats will not bring the bill up for debate this week. That means there isn’t a compromise between the legislators and Governor Culver. It also probably means that a big chunk of taxpayers will see a huge tax increase under the Democrats’ new plan.
After Culver’s flip-flop on gay marriage yesterday, I’m not going to pretend to have a clue what is going on in his mind. If I had to guess, my bet is that Culver was forced by his staff, Attorney General Tom Miller, and Lt. Governor Patti Judge not to interfere with the Court’s decision on gay marriage. On a side note, am I the only one who read that statement and thought there was no way culver would say those words? That statement was very calculated, and seemed forced to me, very un-Culver like.
Anyway, so now that Chet was forced to side with the Court, he is probably adamant that he can’t raise taxes. A flip-flop on gay marriage and taxes in one year would be devastating, and Culver knows it. So while legislative Democrats thought they had an agreement on Friday night, his decision on gay marriage might have turned over the apple cart on the repeal of federal deductibility.
Don’t worry about Chet though, I’m told he seeking the council of Bill Knapp over some nice cold beer at Fleming’s in West Des Moines.
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