Key Iowa legislators say it will be impossible to simplify and cut state INCOME taxes without first changing the system for awarding tax CREDITS. Representative Pat Grassley, a Republican from New Hartford, is chairman of the House Appropriations Committee.

 

Companies that conduct major research get CHECKS from the state because of a “REFUNDABLE” tax credit. A credit for renovating historical properties can be claimed on income tax forms for over five years. Some state tax credits are limited and handed out on a first-come, first-served basis. The state is awarding more than 420-MILLION dollars’ worth of tax credits this year.

Representative Chris Hall of Sioux City is the top-ranking Democrat on the House Appropriations Committee. He says state tax credits are growing “exponentially” and it’s time to act.

 

Hall says he and other Democrats are all for tax REFORM, but the goal has to be reducing taxes for working-class Iowans, not coming up with a way to provide MORE tax cuts for corporations and the rich.