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Kim Reynolds on Tax Reform |
But here's the thing: Because of an outdated provision in Iowa's tax code, Iowans will see a tax increase if we don't pass tax reform at the state level. Iowa is 1 of only 3 states that allow taxpayers to deduct their federal taxes. While that might sound like a good thing, right now it's not. It creates complexity, and worse--it means that when your federal taxes go down, your Iowa taxes go up.
With federal deductibility in place, when the federal government cuts taxes for working-class families, Iowa raises taxes on those same families. That's not just a hypothetical. It's what will happen if we don't act.
Therefore, I will be proposing a tax reform package that significantly reduces rates, modernizes our tax code, and eliminates federal deductibility. This is an opportunity to free us from decisions made in Washington, D.C. and simplify our tax code.
