Some people are trying to confuse and mislead about the governor’s proposal.
Here are facts: Under Governor Reynolds’ bill, no Iowan will see their tax bill increase. Once fully implemented, every single Iowan will see their tax burden decrease.
Believe it or not, there are people out there who don’t want you to have your money back. Instead, they see the current overpayment of taxes as an opportunity to grow government. They oppose the governor’s plan because they will be left with less of your money to spend on their big government dreams. Unfortunately, some of these voices are trying to confuse and mislead about the governor’s proposal.
The way the governor’s bill is designed, not a single Iowa taxpayer will see their tax burden increase.
It is important to remember that under our new laws set to take effect in tax year 2023, the calculation of taxable income changes to conform more closely to the federal code. This results in less income being subject to Iowa tax than under current law. In fact, under next year’s tax code, many more Iowans may not be subject to any tax at all.
This actually works to highlight one of the key benefits of a flat tax: Simplicity. A complicated tax code makes tax reform more difficult as policymakers work to balance potential winners and losers. A flat, simple tax is easier to reform, as the only decision point is how much to lower the one single rate.
Everyone wins.
Here are facts: Under Governor Reynolds’ bill, no Iowan will see their tax bill increase. Once fully implemented, every single Iowan will see their tax burden decrease. For most Iowans, the savings will greatly benefit their family budget.
