Iowa taxpayers being bullied into paying more and more taxes?

April 9, 2009 @ 12:00 AM

Iowans for Tax Relief, 2610 Park Avenue, Muscatine, IA 52761

Contact:  Katie Koberg, (563) 288-3600 or

For Immediate Release:  Thursday, April 09, 2009

MUSCATINE, IA-The bill which forces Iowans to pay a tax on a tax changes, but essentially stays the same.  The new amendment which House Democrat leaders filed on Wednesday in an effort to improve House File 807 is still bad for Iowa taxpayers.

Governor Culver called the plan a $54 million tax cut.  His description is certainly imaginative.  The numbers provided by the Iowa Department of Revenue tell a different story.

The truth is:

2009        $20.198 million tax cut

2010        $34.898 million tax cut

2011        $154.148 million tax INCREASE

2012        $157.104 million tax INCREASE

2013        $149.01 million tax INCREASE 

NET RESULT   $405.166 million TAX INCREASE for Iowans over the next five years.

This new plan and the majority party's explanation is similar to the story of a schoolyard bully.  What Iowa kid would be happy with the following occurring?

The bully tells a kid, "look I'm not going to steal your lunch money on Monday.  In fact, I'm going to give you a $20 bill.  On Tuesday, I'm going to give you $34.  See how nice I am, I just gave you $54." 

The bully continues, "but, you better have $154 for me Wednesday, and every day from then on."

Ed Failor, Jr., President of Iowans for Tax Relief commented, "Iowa taxpayers are tired of being bullied into paying more and more taxes.  The net result of this bill over the next five years is a more than a $400 million tax increase on Iowans.  How on earth is that a tax cut?"

"To make matters worse, in 2011 just over 149,000 Iowa taxpayers who earn $40,000 per year, or less, will see an increase in their Iowa income tax burden.  Is that really the Democrat definition of a middle class tax cut?" Failor concluded.