02/24/2018
Gov. Kim Reynolds and Iowa Senate Republicans want to extend the Sales Tax to ALL of your online purchases, and eliminate the deductibility of your federal taxes on your state tax return, under the guise that they will then lower the tax rates.
Even the Democrats are onboard with parts of the tax proposal--which is a BAD sign.
"Sen. Pam Jochum, D-Dubuque, said there are provisions in the Senate GOP's plan that she embraces, such as increasing the collection of online sales taxes and eliminating federal deductibility."
If we just eliminated Iowa's income tax altogether, federal deductibility wouldn't even be an issue. State government doesn't have any more right to confiscate the first fruits of your labor than does the federal government. The Income Tax was designed to tax Profit & Gain. Wages are not gain.
"I want to create a strong economy by reducing Iowa’s income tax rates and simplifying Iowa’s income tax system," the bill's manager said.