Vander Linden Supports Tax Cut for Iowans
(DES MOINES) – Wednesday, Rep. Guy Vander Linden (R-Oskaloosa) supported House File 478, a bill that leaves more money in Iowans’ pocketbooks and reduces Iowans’ income taxes.
The bill gives Iowans a choice when paying their income taxes, either the current system or a 4.5 percent flat tax with zero deductions or credits. No one will pay higher income taxes under this plan. Additionally, it raises the filing threshold so that the first $6,235 (or $12,450 for married couple) would not be taxed.
“The hardworking taxpayers of Iowa deserve to keep more of their own money,” said Vander Linden. “Not only does this bill cuts Iowans’ taxes, it makes our tax system simpler, flatter, and fairer.”
The nonpartisan Legislative Services Agency (LSA) predicts that with the House proposal, close to 492,000 taxpayers will see their taxes reduced. With the flat tax option, the greatest number of taxpayers who benefit fall in the $30,000 to $40,000 income bracket.
The bill also creates a permanent mechanism to return any overpayment of taxes back to Iowans. Currently, Iowans are paying too much in their taxes. Once the legislature and the governor set budget priorities and reserve funds are full, the taxpayer trust fund collects anything leftover. This bill sends any leftover money back to the taxpayer through a credit on their tax forms. This reduces the tax liability of any Iowan paying income taxes when the state collects more than it needs.
The bill passed the House on a party-line vote and was sent to the Senate for their consideration.