Iowans for Tax Relief expresses concern on the tax scheme proposed by some Iowa Legislators to create a new city income tax.
Iowans for Tax Relief, 2610 Park Avenue, Muscatine, IA 52761
Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org
For Immediate Release: Wednesday, December 31, 2008
MUSCATINE, IA--- A measure being proposed by some Iowa Legislators could allow a city to charge a tax on all residents’ income. This city income tax would be on top of the state income tax, on top of federal income tax and in addition to the city property tax.
Ed Failor, Jr., President of Iowans for Tax Relief said, “Iowans are smart people, and we are smart enough to understand a new tax to reduce reliance on another tax is how politicians describe a tax increase.”
History proves a new tax to lower another tax clearly does not work. President Reagan in 1986 instituted income tax cuts and eliminated many deductions, but in 1990 and 1993 income tax rates went back up and the deductions were gone. In 1992 the democrat led Iowa Legislature coupled a one-percent sales tax increase with a two-year property tax freeze. The tax freeze went away after two years, and the sales tax did not decrease.
Sadly, this new Iowa Legislature is unwilling to take tax reform compromises coupled with actual tax reductions seriously. Only six-months ago the democrat led Iowa Legislature once again increased the state sales tax by another one-percent, without reducing another tax.
A new additional income tax is not what Iowa needs. Iowans are already paying over 3.6 billion dollars in property taxes and more than 6 billion dollars in sales, income and other taxes, the problem is not too little revenue. The problem is all levels of government continue to grow their budgets, and have realized enacting a new tax is a way around property tax levy limits.
Failor continued, “I find it appalling that Governor Culver just this week said, ‘Any way that the state can generate revenue, I'm for,’. The governor clearly doesn’t understand that the taxpayers’ wallets are not his to pick-pocket until they are empty. This sounds like an irresponsible child who takes no responsibility for his spending habits and instead demands more allowance from Mom and Dad.”
Government continues to grow its budget while families and businesses are forced to find innovative ways to do more with less. State government must stop digging itself deeper into the pockets of Iowans, and instead should allow Iowans to prosper and invest in Iowa.
Iowans for Tax Relief will continue to fight for reduced government spending and lower taxes for all Iowans. Visit our website for more information at www.taxrelief.org.