Plan would give Iowa cities power to tax incomes

[Blue Gardener]

Cities would have the power to tax Iowans' incomes as a way to reduce the reliance on property taxes under a proposal that will be pitched to lawmakers next month.

The issue pits cash-strapped municipalities and property owners against anti-tax forces who say local governments must focus on ways to cuts costs rather than be handed a new source of revenue.

"I think it's been a 30-year problem in search of a solution," said Sen. Joe Bolkcom, a Democrat from Iowa City who is co-chairman of a legislative committee that will debate the idea. "I'm not sure if the committee will favor the idea for income taxes or not, but I think it's a good policy option and a good tool to give cities."

I really don't need more money taken out of my paycheck for taxes. Since I've had to take pay cuts instead of pay raises, this would be another blow to my budget.

http://www.desmoinesregister.com/article/20081228/NEWS10/812280327/1007/NEWS05

[pstans]

1. Glad someone is putting a solution out there

Republicans have only complained about property taxes and once again failed to offer any solution besides cutting services.

[Blue Gardener]

3. I just don't need anymore taxes taken out of my check

I'm tapped out.

[47of74]

2. Raise the taxes on all Iowans equally or forget it

I don't think this is a good idea. It would be another confusing and unfair tax system in which people in some municipalities will pay more than others. Because what will probably happen is that some communities will impose taxes but others won't, and it may influence some people to move into suburbs where there isn't a tax or it's lower. That may become another thing that real estate agents will report on is the level of income tax a municipality charges. Keep income taxes at least at the state level.

[Debi]

4. Would you get taxed on where you lived or where you worked?

Where the paycheck went or where it originated?

:shrug:

[47of74]

5. I suppose it would be where one lived

I suppose it would be where one lived. My direct deposit doesn't even originate from Iowa.

[Blue Gardener]

6. I was wondering about that

I work in Iowa City but live in Coralville.

[HuskiesHowls]

7. Just like the "local option" sales tax

I can either spend my money here at home, where I'm taxed more, or I can spend it in some other city, where the tax is lower. However, I do NOT care to support the Des Moines School system, when my own needs help. However, I have no choice, as prices are higher here at home, irregardless of what the tax situation is, and since I'm already in Des Moines working, its easy to stop on the way home and do what shopping I need to do.

But, at least they are talking about a progressive tax, rather than the regressive sales tax!! To throw another wrench into the works, what about people who live in the county--farmers, and more importantly, the wealthy who build the big houses on their acreage out in the middle of nowhere?? Would they be taxed, or would they just slide by?

Income taxes need to be done at the state level, and any increase goes to your city of residence. In the case of people who live in the county, and not inside city limits, then the money could go directly to the county. Or, maybe part of the increase goes to the county, if you live in an incorporated area, and therefore they could cut property taxes. (Yeah, like that would ever happen!!!)