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Newsletter: Taxpayers Evicted from Capitol - April 2, 2009
Thursday, April 02, 2009 -
I have been a Representative for 11 years and I have NEVER seen such frustration exhibited by Iowa’s taxpayers. Tuesday night there was a public hearing in the House Chamber on Federal Deductibility.
What is Federal Deductibility? Federal Deductibility is a tax credit that allows Iowan’s to deduct whatever they paid in federal taxes from their Iowa taxable income. In simple terms, it prohibits Iowan’s from paying tax on income that was used to pay their federal tax bill – Thus the term “A Tax On A Tax”.
A crowd of approximately 500 taxpayers cheered or clapped when speakers opposed the tax increase and booed when people spoke in support of the tax increase. The crowd was warned by the bill manager that if the “demonstrations” (clapping, cheering or booing) continued, the taxpayers would be removed from the chamber. A few minutes later a small business owner spoke emotionally about raising his children, supporting his community and trying to keep his head above water (Ironic play on words, because this gentleman was from Cedar Rapids and his business was destroyed by the floods). Then a young college student spoke about how this tax increase directly impacted young adults graduating college. The crowd applauded this young man’s statements and the Speaker came from the back room and demanded that the doormen and State Troopers remove the crowd from the chamber. The chamber erupted! Shouts could be heard… “This is our house!” Troopers entered all four balconies and removed hundreds of taxpayers.
Why were these taxpayers so frustrated? After all, the Democrat plan only raises taxes on households with incomes over $125,000? Well…that’s what you’re being told, but that’s not true! This bill will have winners – people who will pay less, and losers – those who would have to pay more.
Here are some shocking facts! Of the losers – those who pay more, 69.1% of those paying more are in households of $70,000 and LESS!!! The two household income categories that have the most “losers” are $20,000-$30,000 and $30,000-$40,000. This data was compiled by the Iowa Department of Revenue!
In closing, speakers who spoke on behalf of raising the taxes exclaimed that this change would simplify Iowa’s complicated tax laws. I agree…”Very simply, government takes your largest tax deduction and YOU pay more!” Hey…they’re right, that was simple!!!
I do not support removing federal deductible.
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