Republicans in the Iowa House are advancing their version of a “flat tax.”
Representative Chip Baltimore, a Republican from Boone, says there’d be just a couple of deductions and then a 4.5 percent rate to calculate how much income tax Iowans must pay the state.
“It makes Iowa more competitive with surrounding states,” Baltimore says.
Representative Jo Oldson, a Democrat from Des Moines, says it benefits just a few Iowans.
“Those are predominately people that are in upper income tax brackets,” Oldson says.
The proposal cleared the House Ways and Means Committee this afternoon.