Tax Update Blog: Permalink
« Previous · Tax Update Blog Home · Next »
THEY'RE BAA-ACK
January 11, 2006
Yes, the Iowa legislature is back in session. That means we will see any number of proposals floated to buy votes and influence by mucking up Iowa's tax law.
We'll start a new feature here where where we will try to track Iowa tax propoposals. We may not cover them all, as there are 150 legislators and one me. But here goes:
TAX-FREE GEEZER BILL
The first big income tax proposal would phase out income taxes on all pension and social security income (HSB 502). Last year they wanted to exempt young folks. Make up your minds!
This bill is pure pandering. As much as we cherish our older Iowans, they are statistically our wealthiest folks. They didn't pay taxes on their pensions while they worked, and now they aren't to pay taxes on them as retirees? Remember, giving the old folks this break by definition means a tax increase for the rest of us. The boomers are getting ready to stick it to us once again!
Or is the goal economic development: to make Iowa the next Sun City by attracting old folks here? Maybe that's what they can use that Rainforest thingy for.
In any case, the House Ways and Means Committee has already voted this thing to the floor. Bad news travels fast.
UPDATE FROM THE COMMENTS: Another tax provision to drive out those unruly youngsters.
OTHER BILLS IN BRIEF:
•Exempting the sale of certain school supplies from the sales and use taxes during a specified time (HF 2001). There is no possible policy justification for a holiday. Either these things should be taxed, or not. Go here for a more detailed discussion, if you're interested.
•Increasing the taxes imposed on cigarettes and tobacco products and providing for deposit of the increased revenue generated in the Senior Living Trust Fund (HF 2022). Tobacco: the revenue wonder weed. Perhaps they shouldn't raid the trust fund in the first place.
The Legislature is developing a nasty nicotine habit. All these tobacco tax increases are going to bite the legislature if people come to their senses and stop smoking. Well, they can always put cigarette vending machines next to the video lottery terminals.
• Eye on the Legislature ~ • Iowa Tax Law Bookmark: del.icio.us • Digg • reddit
Tax Updates
Subscribe to Tax Updates
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to
Search Tax Updates
Friends and Neighbors
Economics Nerds
Hard-Core Tax Nerds
Gigablogs
Insurance Folk
Goners
Legislation
Tax Update Data Feeds
Comments
Don't forget the Guv's proposal to increase the Beer Tax by 50%, el Jefe posted on it last night. How are you going to keep young people if they can't get drunk and old people if they can't get their nicotine buzz?
Posted by: Chad | January 11, 2006 2:34 PM
I think most non-smokers don't understand why the legislature winces when considering the tax on cigarettes. Because it's oh so profitable! And if people quit because the tax is high...DUH...the revenue will disappear. Although on the east coast that doesn't seem to matter. A carton of cigarettes here is about $27. In some states out east they are $45.
Posted by: Brent | January 11, 2006 8:50 PM