Governor Terry Branstad says he is “open” to making changes in the state’s income taxes next year.
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Branstad says he MIGHT support ending a controversial tax break that makes Iowa’s income tax RATES look higher than they actually are. Two decades ago, Branstad UNSUCCESSFULLY proposed getting rid of that tax credit. It gives Iowans the ability to subtract what they paid in FEDERAL income taxes from their state tax bill.
Branstad says Iowa is one of the “few states” that offer that deduction and it’s “an impediment” when trying to lure business to relocate or expand in Iowa.
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While Branstad says this is a problem, he’s not yet ready to call for eliminating this tax break until he’s sure a majority of legislators would vote to take that step.