Governor Tom Vilsack has signed a bill which erases the sales tax on your natural gas bills this month and next. Then, the sales taxes on natural gas, electricity, heating oil and propane will be gradually eliminated altogether by 2006. Vilsack calls it a “progressive” tax cut that will provide assistance and help to Iowa’s working families. He says it will also provide “symbolic” relief from current high energy costs.The tax cut’s not for businesses. It’s just for homes. In 2006, Iowans will save an estimated 100-million dollars in utility taxes. Vilsack says the cut represents approximately 16 percent of the state budget.Vilsack says the Republican-led legislature should put other tax cuts on hold, because there’s not room to cut any more taxes and increase teacher salaries. Vilsack says it would be “fiscally irresponsible” to cut more taxes.
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