Updated: 30 January 2013 | 6:25 am in conversations
Would you support a flat income tax rate for Iowa?
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Iowans would have the option of paying a flat 4.5 percent state rate on their 2013 taxable income or using the current system of deducting expenses and federal taxes they pay under a major policy change that got its first legislative nod of approval Tuesday.
Proponents said the alternative would simplify an overly complex state income tax return, and likely reduce state revenue, as taxpayers opt for the method that costs them the least, while critics argued the flat tax approach primarily would benefit Iowans in the higher income brackets that now pay up to 8.98 percent on their taxable income.
Do you think a flat tax rate is a good idea for Iowa?
Rules of Engagement
Would you support a flat income tax rate for Iowa?
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The complexity in doing a tax return is in determining what is taxable income. Determining the tax due, after you know your taxable income, is the easy part.
This proposal for a flat tax will do nothing to reduce the complexity. What it accomplishes is another tax break for the wealthy. The Republicans continue to demonstrate they represent only the wealthy and will do whatever they can to help the rich get richer while reducing support that the lower income and middle income people rely on.
No, a flat tax would take money from people who cannot afford to lose it.
If the flat tax was zero then yes, I’d be all for it.
The lower and lower middle income people essentially spend all their income on necessities and discretionary spending is small. Any income taken from them in taxes takes that money right out of the economy. That’s not the case, at least not nearly as significantly, for the people of more wealth. A thriving economy depends on money spread more evenly over the population. The relatively small population of the rich (or as the Republicans would prefer we call them, “job creators”) simply won’t spend enough to drive the economy.
Yes, I not only support a flat tax on all income above a certain minimum, but I support the elimination of the state tax deduction, and many other deductions, on federal tax returns. Deductibility of state taxes on federal tax returns means that people from high tax states don’t pay their fair share of federal taxes.
As for soaking the rich, the wealthy can afford to hire the best tax lawyers to find tax shelters and tax avoidance schemes which are largely shakedowns of the wealthy for contributions by politicians anyway. Recall that it was Leona Helmsley who said she didn’t pay taxes, only the little people paid taxes.
Taking the current tax code and adding to it isn’t exactly simplifying it. Maybe they should work on actually simplifying the tax code like they claim to want to do.
We don’t think we need anythng like a flat tax. There can certainly be some improvements in our state tax laws, but a flat tax would only be another political dodge where gutless legislators can hide their decisions.