LANDON: A Tax Cut for Middle Income Iowans Could Be On The Way

Since the first week of the 2013 session, the Iowa House has been working on ways to leave more money in Iowans’ pocketbooks.   On March 13, we passed House File 478, for consideration in the Senate.

House File 478 as amended and passed:

• Raises the filing threshold so that the first $6,235 (or $12,450 for married couple) would not be taxed. 

• Returns overpayment of taxes back to Iowans.

• Gives Iowans a choice when paying their income taxes, either the current system or a 4.5 percent flat tax with zero deductions or credits. No one will pay higher income taxes under this plan.

• Is a step toward making Iowa’s tax system simpler, flatter, and fairer.

Currently, Iowans are paying too many tax dollars. Once the legislature and the governor set budget priorities, and reserve funds are full, the taxpayer trust fund collects anything leftover.  This bill sends leftover money back to the taxpayer through a credit on their tax forms (every Iowan receives the same credit). This reduces the tax liability of all Iowans paying income taxes when the state collects more than it needs.

The nonpartisan Legislative Services Agency (LSA) estimates that 39 percent of all income tax filers in Iowa (mostly those who are in the $30,000 to $40,000 income bracket) would choose the flat tax option and it would reduce the overall tax burden by close to $400 million.  Those who elect this option would save $819 on average.

There is a fork in the road – should the legislature take the path of spending one-time revenues on recurring expenses or should the legislature send this money back to Iowa taxpayers?  The Iowa House (vote split by party lines) believes any overpayment of tax dollars belongs in the pockets of Iowans.  Stand by for the Senate’s decision.

I am pleased to be able to deliver on the campaign promise that I will work to lower the tax burden on the residents of House District 37. Thank you for the opportunity to serve you and the citizens of Iowa.  Some of you have contacted me to represent you on this and other issues such as education, Medicaid expansion, second amendment rights and property tax relief.  I am listening so please keep your emails and letters coming or join me at one of the following forums:

• March 23, 2013, 8 a.m., Café Diem, 2005 S. Ankeny Blvd.

• April 6, 2013, 9 a.m., Neveln Center, 406 S.W. School St.

• April 27, 2013, 8 a.m., Café Diem, 2005 S. Ankeny Blvd.