Personal Taxes

Iowa lawmakers are occupied with abolishing revenue tax

SIOUX CITY (KCAU9) – Iowa’s Revenue Estimating Conference released its budget projections Monday, showing the state will have an unspent surplus of approximately $ 1.3 billion by the end of this year.

With all of that excess, along with an additional billion dollars still available from the National Taxpayer Relief Fund, momentum has begun among Iowa’s leaders to change tax rates and even have talks about the complete abolition of Iowa income tax .

“The money belongs in the hands of the taxpayers. When we’ve already got our budget needs met, we don’t have to take in more than we need, and that’s why Governor Reynolds wants to go that route, so Senator Whitford and Senator Dawson want to go that route, and I think it’s the right way to go. ” said Jim Carlin, Senator for District 3 state.

Carlin says more tax breaks for Iowans remains a top priority for the Republican Party. Governor Kim Reynolds said earlier this summer: “This excessive taxation is unethical and must end.”

Despite growing appetites, Carlin says it might be too much to get rid of income tax entirely, but it is time to become more competitive with surrounding states.

“Are we realistically there? No, no, we still have a way to go. We actually pay more in taxes than 80% of the state, I think we rank 40th for income tax, ”Carlin said.

State Representative Skyler Wheeler has long been campaigning for income tax abolition as it is one of the bigger issues he hears about from voters.

“But ultimately, I think we have a lot of headroom and we have the option to create a little more headroom to get rid of income tax, and that will open up all kinds of opportunities for us, especially here in west and northwestern Iowa, if we.” compete with South Dakota, ”said Wheeler.

The Iowa Legislature is expected to begin its session on January 10, but Carlin says budget proposals won’t come until later in the year.

Related Articles