Dear Iowa Taxpayer:
Yesterday, April 15th was Tax Day. The day on the calendar that is burned into the minds of almost every working man, woman or child in this country. While the due date for our federal individual tax returns yesterday was certainly nothing to celebrate, it provides a perfect opportunity to update you on important comprehensive tax reform developments in Iowa.
Iowa is providing a glimmer of hope in the fight to give taxpayers a fairer, flatter and simpler tax code. While politicians in Washington, D.C. seem to spend all their time finding someone to blame, problem solvers in the Iowa House are taking steps to make our state government more accountable to taxpayers and more welcoming to families and job creators.
Recently, I was honored to have the opportunity to lead a bill through the Iowa House to confront big spenders in Des Moines. You know the type. The liberals who can never seem to get enough of your hard-earned paycheck in order to fund their bloated government programs.
The best way to put the brakes on those spenders is to cut off their cash. More specifically, cut off their access to YOUR cash. So, how do we do it? Simple. We give you, the Iowa taxpayer, an option to simply pay a flat 4.5% on your federal Adjusted Gross Income.
As the successful floor manager of House File 478, the bill establishes an alternative method of calculating your state income tax. Instead of paying a tax rate of up to 8.98%, Iowa taxpayers can adopt to pay the flat 4.5 percent.
Additional benefits in our individual taxpayer reform legislation include:
1. Choice – each year, taxpayers can choose whichever method allows them to pay the least in taxes.
2. Simplicity – the 4.5% flat tax calculation saves taxpayers from having to keep track of the myriad of ever-changing tax deductions and credits. The tax return really could be filed on a postcard.
3. Fairness – every taxpayer pays the same rate, but those who make more still pay more in taxes. And no more politically-favored deductions or credits.
4. Competition – a flat 4.5% tax rate makes Iowa much more competitive in comparison with surrounding states, and is much lower than the current 8.98% top income tax rate.
5. Growth. And, perhaps most importantly, the $400 million saved each year by Iowa taxpayers, many of whom are small business owners, will be saved, invested and spent right here in Iowa. The best economic stimulus is one that does not flow through the government. This bill will lead to dramatic and permanently sustainable economic growth.
As we proceed with the 2013 Legislative session, more tax reform bills will be coming from us in the Iowa House. I am pleased to have the chance to participate in crafting these reform measures, including being named to floor manage upcoming legislation to provide an alternative and more competitive corporate income tax for Iowa.
Lower taxes. Good paying jobs. More accountable government. That is the Iowa we need, that is the Iowa I’m fighting for, and these common-sense tax reforms are a step in the right direction.
Tags: April 15th, Chip Baltimore, flat tax, House File 478, Tax Day