NorthIowaToday.com

Founded in 2010

News & Entertainment for Mason City, Clear Lake & the Entire North Iowa Region

Rep. Upmeyer touts “Generational tax reform” for Iowa families and small businesses

The following is a Legislative update from ep. Linda Upmeyer of Clear Lake –

Upmeyer
Happy summer! In Iowa it never seems like we get to enjoy spring or fall for very long. This year is no exception and the heat is already here. Here’s to hoping for cooler weather as the school year comes to an end and family vacations begin!

Last weekend we celebrated Memorial Day and took time to remember and honor those who gave their lives serving our country. We owe a debt of gratitude to these heroes and we can’t thank them enough. I hope you all were able to pay your respects to those we have lost and were able to spend some time with your families over the holiday weekend.

Late last year, Congress passed a historic tax reform package at the national level that will save Iowa taxpayers about $1.8 billion this year. However, these reforms have created an influx of new revenue for the state because we currently use federal deductibility. Iowans won’t be able to deduct as much in federal taxes, because they’re paying less, so their states taxes will actually increase as a result.

The state shouldn’t pocket this money to go on a spending spree and grow government. Instead, we looked for a path to return it to taxpayers and reform Iowa’s tax code for the 21st century.

As the last days of the legislative session came to an end, we crafted a plan that provides true tax relief to Iowa families and small businesses, simplifies our tax code and makes it more competitive with other states, and ensures fairness for Main Street businesses. Perhaps most importantly, it does all of this in a prudent way so that our budget remains sustainable in future years.

So what does these mean for taxpayers in 2019?
Iowans will see an average tax cut of about 10%
93% of middle class Iowans will see their taxes reduced
Income taxes for Iowans will be reduced by $400 million
In future years, additional tax cuts and reforms will go into effect as early as 2023 as long as economic growth meets certain benchmarks. If those benchmarks are met, federal deductibility is eliminated, rates are lowered, and we go from nine individual tax brackets down to just four. These changes will dramatically simplify the tax code and make it easier for Iowans to understand.

When fully phased in, the average family of four will see their taxes reduced by more than 25%! That’s real money that remains in their pockets.

This tax plan also modernizes our tax code to ensure fairness in today’s modern economy. Main Street businesses are often put at a disadvantage as our economy moves more towards internet sales and subscription services. Now is the time to eliminate this unfairness by requiring online sellers and internet-based services to begin collecting sales tax just as our brick and mortar retailers have done for decades.

Our tax reform package is a bold plan that provides significant relief to Iowa taxpayers, and it does so in a fiscally responsible way. Our tax plan will allow us to continue making investments in key priorities like education, health care, our workforce, courts, and public safety programs. It also accounts for possible fluctuations in revenue by leaving a healthy surplus in future budget years.

This tax reform plan means Iowans will keep more of their hard-earned money and be able to use it in the best way they see fit. We trust Iowans who know how to spend their money better than government which is why I was proud to vote in support of this bill.

Even though we have adjourned for the year, please let me know if I can help in any way. During the interim, I would love to hear your ideas and feedback on this legislative session and what you’d like to see accomplished next year.

0 0 votes
Article Rating
Subscribe
Notify of
guest

2 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Even more news:

Watercooler
Copyright 2024 – Internet Marketing Pros. of Iowa, Inc.
2
0
Would love your thoughts, please comment.x
()
x