Technical problems at home. So I’m late and brief.
Mainly, I wanted to point to The Register’s story today reporting that U.S. Rep. Steve King’s tax property break was a clerical error, according DC officials. He plans to pay it back.
The big story is the partisan tax reform battle firing up at the Statehouse. Dems want to eliminate federal deductability and plow the new revenue into tax breaks for people earning less than $125,000. They say it’s a middle class tax cut. Republicans say it’s a job killer and a trick and income redistribution. It all promises to dominate the final weeks of the session.
It’s also reminiscent of last fall’s Obama-McCain battle over Obama’s plan to cut taxes for people under 250,000 and raise it on others. The GOP says small biz will be hurt.
Democrats say the move would make Iowa’s income tax rates look better when recruiting businesses. Right now, they argue that federal deductability inflates those rates, so Iowa gets lumped in with high-tax states unfairly.