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Flat Tax Proposed In Iowa

Flat Tax Proposed In Iowa

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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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