Governor Tom Vilsack today plans to sign a bill which provides three different tax cuts.Iowa’s elderly will get to keep a little more of their pension income, tax-free. Iowans who fix-up historic property will get an income tax credit. And business owners who fix offices so they can hire a disabled worker will get a tax break. Vilsack says those tax cuts will help strengthen Iowa’s economy. He says they’ll increase the chances of retaining people in the state, and will send a message to the research and development community.Vilsack says he’s disappointed Republican legislators balked at eliminating what’s known as “federal deductibility.” It gives taxpayers a deduction for federal income taxes paid. Vilsack says the way calculations are made, it makes Iowa’s income tax rates look higher than they actually are. He says if they’re going to get serious about tax policy, then they’ll have to get serious about federal deductibility. The bill will allow about 225-thousand retired Iowans to get the first six-thousand dollars of pension income without paying taxes on it.Two bill signing ceremonies are scheduled, one in Davenport, the other in Des Moines. Two bill signing ceremonies are scheduled, one in Davenport, the other in The bill signing in Davenport is at 9:30 a.m. at the Center for Active Seniors. The bill signing in Des Moines is at 12:30 at the National Historic Preservation Awards Presentation at the State Historical Building.
