DES MOINES – Iowans may soon have a choice when filing their tax returns.
Yesterday, on a vote of 53-47, the Iowa House passed HF478, a bill that would allow Iowans the choice of the current tax system or a 4.5% flat tax with zero deductions or credits when paying their income taxes.
Republicans said Thursday that the bill “leaves more money in Iowans’ pocketbooks and reduces Iowans’ income taxes” and “no one will pay higher income taxes under this plan. ”
As a further tax break, the bill raises the filing threshold so that the first $6,235 (or $12,450 for married couple) would not be taxed.
The bill now heads to the Democratically-controlled Senate.