Tax documents on the table

Just the beginning! Iowa House wants to put money back in the pocket of Iowans

The Iowa House passed the Republican supported proposal, HF 2317, proposing a 4.82% flat income tax for earnings over $6,000 and exempting retirement earnings at a vote of 61 to 37. Flat taxes demonstrate the “trickle-down” theory of economic politics, providing more tax savings to the wealthy, expecting the funds to cycle back into the economy to benefit everyone. I believe the best flat tax is 0%. Your hard-earned dollar is yours to use as you see fit.

 

 

 Our representatives can have us Iowans vote on tax changes such as this. So why is a policy that helps only the wealthiest Iowans introduced without a public vote? Could it be that this year is a big election year for the Governor, Iowa House, and Senate? I believe in placing people over party and capital gain. A bill affecting so many Iowans should be subjected to public opinion putting the people’s ideals over campaign strategy and fundraising hopes. As a small business owner, I would pay fewer taxes while struggling community members would pay more. My concern is putting people first, not my gain, so I’m against this legislation. Our wages should not be subjected to tax.

 

 

I do not support increasing taxes for higher-earning households discouraging their motivation to earn and invest. However, subjecting low-earning households to the same tax rate presents a long-lasting negative economic impact. First, Iowans experiencing poverty will have less to spend on necessities when contributing a greater percentage of their income towards taxes. Secondly, property taxes and rental rates have increased in the last few years. As a result, struggling households will provide big government a considerable portion of their overall income.

 

 

With Iowa entering the fiscal year with a surplus of $1.24 million, it is difficult to understand the push to eliminate tax brackets and present a flat 4.4% income tax rate for households earning below $6,000 and 4.82% over $6,000. Taxation beyond what is required to fund the state government’s most essential functions is illogical and harmful to the economy and its citizens. Under this legislative policy, the poorest Iowans will contribute rather than benefit from the surplus.

 

 

Respectively, wealthy households will pay higher taxes due to having more. However, they will receive the most tax savings overall. For example, households experiencing poverty earning $6,972 a year will have their income tax increased by 2.57%. In contrast, higher-earning households making $80,000 a year will decrease their income tax by 3.71%. HF 2317 will provide only the highest-earning households tax cuts.

 

 

Additionally, the Senate has introduced a similar bill, SF2206. With similar bills proposed in both state houses, HF2317 has the momentum to become a reality, taking more from households with less. Want to do something about this? Call or email your senator to tell them why this bill should not pass, ask them to put people before party!

Jeni