No Iowan under the age of 30 would pay state income taxes if a plan unveiled this morning (Tuesday) by Senate Republicans becomes law. Senate Republican Leader Stewart Iverson of Dows says after years of population losses, Iowa leaders need to think differently if the state is going to grow, and erasing state income taxes for Iowans under the age of 30 might be the big idea that makes Iowa more attractive to young people. “I think it’s important that we explore different avenues than the ones that we’ve talked about in the past,” Iverson says. Senate Co-President Jeff Lamberti, a republican from Ankeny, says it would help young adults pay off a college loan more quickly, and make their paycheck bigger. “If you tax liability is lower, that makes each job in Iowa more attractive,” Lamberti says. “Thirty year olds and younger do make their decisions based on economics and what they’re being paid.” Matt Paul, Governor Tom Vilsack’s press secretary, says it’s an idea worth more examination. Paul says the governor called for “bold action” from legislators, and Paul says Vilsack appreciates the new thinking. Paul says the governor wants to “see some numbers” that would show how much it would cost the state to make such a move. But the governor’s spokesman says Vilsack is pleased that lawmakers are so willing to talk about ways to stimulate job creation. The Senate Republicans are also calling for a business tax credit that would reward businesses that create jobs by giving a tax credit equal to the salary of any new job that pays better than 10 dollars an hour. “It gets government out of the business of picking winners and losers. It doesn’t discriminate between urban and rural; big business (and) small business, whether you’re new to the state or (an) existing business,” Lamberti says, a reference to the Iowa Values Fund Governor Vilsack’s touting that is to hand out big money grants to businesses that promise to expand in Iowa and create dozens of new jobs. “If you create a job in Iowa, under this plan, you will get the benefit.” Iveron says it means the state benefits come after a job is created, not before. “And I think what it says to businesses across the United States (is) Iowa is open for business and we’re ready to receive you and we will help you and make it worth you while,” Iverson says.
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