Sen. Randy Feenstra, R-Hull, said all 24 minority Senate Republicans have signed onto a proposal to significantly lower state personal income tax rates and simplify the Iowa tax code by offering a two-pronged approach that would eliminate federal deductibility and benefit most Iowans.
The Hull Republican said the proposed new tax structure would flatten the current nine income tax brackets into three, elimination of federal deductibility as a competitive impediment, enhance the current standard deduction for all taxpayers and provide an extra boost for blind, elderly and dependent Iowans, eliminate itemized deduction, increase personal exemption credits, and raise filing thresholds.
So far I have been unable to find the bill (though it being April 11, I’m not going to spend a lot of time looking for it today). As Senate Republicans have no chance of advancing a bill in the face of majority Democratic opposition, it’s really a gesture. Still, it’s nice to see that income tax reform remains alive, in spite of the Governor’s indifference this year. It’s also nice to see that the insistence on keeping the deduction for federal taxes is eroding. Much better to build it into a lower rate.
If they keep talking taxes, they may finally see that The Quick and Dirty Iowa Tax Reform Plan is the way to go!
Radio Iowa has more.
This is a bit weird given that President Obama rides on what is essentially the nicest corporate jet in the world. To be fair, the President is quite right that companies do not need a tax break to buy corporate jets. But since they don’t really get a tax break for buying corporate jets, we probably don’t need to spend this much valuable presidential time worrying about this non-problem.
Anything to make life difficult for a high-tech U.S. manufacturer. As long as the President continues to beat dead horses like this and the “Buffett Rule,” we know he is not at all serious.
Tony Nitti, Tax Aspects Of The President’s FY 2014 Budget
Howard Gleckman, The Real 2014 Budget Battle May Be Over Spending, Not Taxes
William McBride, President Obama’s 2014 Budget Takes another Whack at Savers (Tax Policy Blog)
Paul Neiffer, Here We Go Again!
Cara Griffith, Crafting a Better Mainstreet Fairness Act? (Tax.com)
By enacting it? How Democrats Will Destroy Progressive Government (Joseph Thorndike, Tax.com):
Sure, Democrats pay lip-service to infrastructure, education, and the like. But for the most part, they are profoundly unwilling to make a wholistic case for activist, progressive government.
Actually, they probably wouldn’t get very far making the case honestly.
Jason Dinesen, Same-Sex Marriage, Divorce and Taxes
Me: How much K-1 loss can I deduct? Start with your basis. Part of my 2013 filing season tips series. My exciting installment on partnership debt basis goes up later this morning.
Oh, but it’s for our own good. IRS Claims It Can Read People’s E-Mails Without Needing a Warrant (Joseph Henchman, Tax Policy Blog).
Russ Fox, Bozo Tax Tip #2: Nevada Corporations
Kay Bell, Top 10 things you don’t want to hear from your accountant. How about “I’m calling from Brazil, thanks for the cash!”
He’d have had trouble during tax season. FYI: The Guy Who Stabbed 14 People At a Texas College Wanted To Be an Accountant When He Grew Up (Going Concern)
News you can use. Make Your Own Bubble in 10 Easy Steps (Bryan Caplan)