Flat Tax Proposed In Iowa

Flat Tax Proposed In Iowa


The top Republican in the Iowa House says if Republicans win statehouse majorities in the House and the Senate this November, one item on his wish list for 2015 is a “flat” state income tax. House Speaker Kraig Paulsen, a Republican from Hiawatha, spoke at a meeting of central Iowa Republicans.

Paulsen and his fellow House Republicans endorsed a “flat” tax proposal last year, but it was not considered in the Democratically-led Iowa Senate. The proposal would have allowed Iowans to continue filing their income taxes under the current system or choose the alternative of a four-and-a-half percent flat tax on their income, with no deductions.

Republican Governor Terry Branstad floated the idea of a “flat tax” in December of 2013, but wound up abandoning the proposal in early 2014 because of Democratic opposition. Democrats say the “flat” tax would provide a “significant’ tax break for wealthy Iowans and do nothing to make the state’s income tax system fairer.

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