Coupling Unhitched & Taxes Going Up


Thumbs up to Senator Julian Garrett for saying on the Senate floor, “Every year revenue has gone up. Every year, spending has gone up more. That’s the problem.”


Wednesday, Senator Pam Jochum said,
“Tax cuts are spending.”

Sen. Jochum, letting people keep more of their own money is not spending!


Coupling Unhitched & Taxes Going Up!

The long-standing taxpayer protection of coupling has fallen victim to past overspending by Iowa’s legislature. Iowa’s income tax code will no longer match or “couple” with many federal deductions when filing state income taxes for the 2016 tax year.

Iowa overspent because last year’s legislature budgeted right up to the maximum of estimated revenue. Tax receipts will grow by over $300 million this year, but that amount is less than initially expected. This week the House, Senate, and Governor tentatively agreed on removing $117.8 million from the remaining Fiscal Year 2017 (ending June 30, 2017) budget. Removing many previously reliable income tax deductions for Iowans was unfortunately a major piece of the budget solution.

Coupling is not just a tax protection; by not coupling Iowa has just made tax filing more complicated, too.  Joe Kristan, a CPA at Roth & Company, PC, Des Moines, Iowa, said in a recent post online, “We didn’t expect Sec. 179 coupling, but wholesale non-coupling is a new and unwelcome twist. So this tax season will be awful in Iowa”.

Kristan said the affected items will include:

  • Exclusion for IRA distributions to charity
  • Exclusion of gain from qualified small business stock
  • Basis adjustment for S corporation charitable contributions
  • Built-in gain tax five-year recognition period
  • $250 above-the-line educator expense deduction
  • Exclusion of home mortgage debt forgiveness
  • Qualified tuition deduction
  • Optional sales tax deduction
  • Conservation easement deductions
  • Deduction for food inventory contributions

Some legislators have indicated they would like to make coupling permanent in next year’s legislative session beginning with the 2017 tax year.  If not, this is SIMPLY A TAX INCREASE! We need your help to keep legislators accountable and not let this tax increase continue in the future.


Change Starts With YOU!

Motivational speaker Tom Ziglar said, “Change starts with you, but it doesn’t start until you do.”

Pro-taxpayer voters stood up and spoke in November. The message of wanting change, reform, and reduced spending won at the ballot box. We started, but are nowhere near the finish line.

As we have seen with recent gatherings and marches, supporters of more spending and higher taxes show up demanding more resources be devoted to their pet projects. In turn, advocates for reduced spending and lower taxes need to constantly reinforce the smaller, smarter government message by attending local forums to support pro-taxpayer legislators. Remind them to follow through with changes you so clearly desired when you cast your votes in November.

If you are not able to attend a forum, call or email your legislator. Visit the legislator lookup page at for your legislator’s contact information.


Attend and Get Active!

Speak up and let these pro-taxpayer legislators know you want to help them protect Iowa’s budget.
These are not ITR sponsored forums.

Friday, January 27

Sen. Mark Costello
7:00 a.m., Bedford Farm Bureau Office, Bedford

Rep. Lee Hein
Noon, City Council Chambers, Monticello

Rep. Gary Mohr
9:00 a.m., Devils Glen Hy-Vee, Bettendorf

Saturday, January 28

Sen. Jerry Behn
8:30 a.m., Iowa Central Community College Triton Café, Fort Dodge

Rep. Brian Best
10:00 a.m., New Hope Activities Building, Carroll

Sen. Dan Dawson
9:00 a.m., Woodrow Wilson Junior High, Council Bluffs

Rep. Cecil Dolecheck
8:00 a.m., Fire Station, Shenandoah
10:00 a.m., Glen Miller Museum, Clarinda
Noon., Local Extension Office, Mt. Ayr

Sen. Julian Garrett
9:00 a.m., Farmers and Merchants State Bank, Winterset

Rep. Stan Gustafson
9:00 a.m., Farmers and Merchants State Bank, Winterset

Rep. Steve Holt
10:00 a.m., Logan Community Center, Logan

Rep. Chuck Holz
9:00 a.m., Fire Station, Moville
10:00 a.m., City Hall, Pierson
11:15 a.m., Community Building, Kingsley
12:45 p.m., Three Sisters Bistro, Remsen

Sen. Tim Kraayenbrink
8:30 a.m., Iowa Central Community College Triton Café, Fort Dodge

Sen. Ken Rozenboom
8:30 a.m., Smokey Row, Oskaloosa

Rep. Sandy Salmon
9:00 a.m., Library, Sumner
11:00 a.m., Library, Readlyn

Rep. Mike Sexton
8:30 a.m., Triton Café Board Rooms 100 & 101, Fort Dodge

Rep. David Sieck
8:00 a.m., Fire Station, Shenandoah

Rep. Guy Vander Linden
8:30 a.m., Smokey Row, Oskaloosa

Rep. Matt Windschitl
10:00 a.m., Logan Community Center, Logan

Sen. Brad Zaun
10:30 a.m., Urbandale Chamber Offices, Urbandale


Iowa Tax News

This week’s links of interest about tax issues in Iowa.

The long standing taxpayer protection of coupling has fallen victim to our state’s overspending.
Quad City Times – 

Tax receipts are up 4%. IT’S A SPENDING PROBLEM!
Sioux City Journal – Why can’t Iowa pay all its bills? Tax cuts among reasons 

“It is time for us to set priorities. We can’t afford to fund everything.” Sen. Tim Kraayenbrink
Des Moines Register –

“We can’t spend more than we have.” Senator Charles Schneider says. “That’s not politics. That’s math.”
Radio Iowa –


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