tag:blogger.com,1999:blog-23751890.post5084459646392966824..comments2024-01-28T09:27:20.490-06:00Comments on Century of the Common Iowan: Debating Ending Federal Income Tax Deductabiltynoneed4thneedhttp://www.blogger.com/profile/00722983760373724246noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-23751890.post-50301096438740647372009-04-02T15:45:00.000-05:002009-04-02T15:45:00.000-05:00There are 2 parts of the plan. First it would end ...There are 2 parts of the plan. First it would end the ability to deduct your federal income tax. Second, that money would then go into cutting tax rates. Overall the plan is revenue neutral.<BR/><BR/>From today's Register (which I blogged about)...<BR/><BR/>"For most, however, the change would not mean an increase in total tax bills. <B>To account for the federal deduction, Iowa simply raised state rates.</B> Which is why eliminating federal deductibility has been a goal of members of both political parties for many years: Compensating for deductibility has meant Iowa's income-tax rates look out of whack compared to other states. (Only two other states, Alabama and Louisiana, allow 100 percent deductibility.) By eliminating the deduction, <B>Iowa can bring its rates down to be more in line with other states</B>"noneed4thneedhttps://www.blogger.com/profile/00722983760373724246noreply@blogger.comtag:blogger.com,1999:blog-23751890.post-24924897338159436382009-04-02T11:03:00.000-05:002009-04-02T11:03:00.000-05:00you have no idea what you are talking about. the ...you have no idea what you are talking about. the plan does not cut tax rates! it eliminates the ability to deduct our federal taxes from our iowa taxes. that is a tax increase!!! <BR/><BR/>then it redistributes the wealth which is socialism, NOT FREEDOM <BR/><BR/>why do we want to penalize people who make $125k a year? and those who don't make that much, why work hard to give your children a better life than you, when in the better life you get penalized? wouldn't it be nice if more people could make $125k+? but with this plan, it deters people to work hard, make money and provide more for their families. thats not freedom.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-23751890.post-33743529711642879432009-04-02T09:50:00.000-05:002009-04-02T09:50:00.000-05:00The plan would cut tax rates. You are saying a yo...The plan would cut tax rates. You are saying a young professional would not have as many deductions, but they would still be paying a lower tax rate.noneed4thneedhttps://www.blogger.com/profile/00722983760373724246noreply@blogger.comtag:blogger.com,1999:blog-23751890.post-77506047505699167292009-04-01T19:33:00.000-05:002009-04-01T19:33:00.000-05:00Pat,It looks like your concern for the brain drain...Pat,<BR/>It looks like your concern for the brain drain in Iowa is over. This proposal is flawed in so many ways. I prefer to call it, flawed socialism. This is redistribution of wealth but unfortunately young professionals and college graduates get hosed. Most fresh out of college graduates, don't have children, don't own their home and make under what the democrats call rich, $125k. Therefore they will not see a tax cut from eliminating the federal deductibility, they'll see a tax increase. <BR/><BR/>To make matters worse, there is no incentive for these recent grads to make $125+ in this state because they will be punished with a tax increase. Flawed socialism at its finest = a larger brain drain problem than what we already have.The Jimadornoreply@blogger.comtag:blogger.com,1999:blog-23751890.post-58952691975522802012009-04-01T14:56:00.000-05:002009-04-01T14:56:00.000-05:00I'm in favor of ending federal tax deductablity on...I'm in favor of ending federal tax deductablity on personal income taxes over $125,000. My problem stems from the current state of the bill which does not exempt small business (S-corps, LLC, partnerships, or sole proprietor ships). Ending federal tax deductability for small business would be a major hardship given the current economic situation.Bennoreply@blogger.com