GOP 20 percent tax cut passes committee

[NNN0LHI]

http://iowaindependent.com/51902/gop-20-percent-tax-cut-passes-committee

Previous across-the-board cut resulted in 80 percent of the state actually paying more in taxes

By Jason Hancock | 02.03.11 | 8:37 am

Legislation to lower each of Iowa’s nine individual income tax brackets by 20 percent passed the state House Ways and Means Committee Tuesday on a 19-5 vote, with four Democrats joining with 15 Republicans in favor.

House File 4 takes the current individual income tax rates — which range from 0.36 percent to 8.98 percent — and reduces them to a range of 0.28 percent to 7.18 percent. The result would be $200 million less in revenue coming into the state coffers.

House Republicans have said they could pay for the huge tax cut with the budget reductions included in House File 45, which among other things would eliminate universal preschool funding for four year-olds, make funding cuts at the higher education level, cut funding for family planning services, eliminate a state-funded smoking cessation program and eliminate funding for passenger rail.

[liberal N proud]

1. Has anyone pointed out how insane it is to cut taxes while complaining about deficits?

[Angry Dragon]

2. Can't let the new math get in the way of insanity

All they are worried about is how they will look for re-election

[subterranean]

3. The tax cuts will overwhelmingly benefit the richest Iowans...

while the service cuts will mainly affect the poor.