If the President pushes his tax cut through Congress, Iowans might have to pay more taxes, but Republican legislators promise that won’t happen. Iowans have the ability to deduct their federal taxes from their income before calculating how much state taxes they owe. It’s called federal deductibility. So, if your federal tax bill shrinks, your state taxes probably will go up. House Speaker Brent Siegrist, a republican from Council Bluffs, says Iowa Republicans would like to mimic President Bush’s across-the-board tax cut, but says the governor wouldn’t sign the cut into law.House Republican Leader Christopher Rants of Sioux City doesn’t think Democrat Governor Tom Vilsack’ll go along with an across-the-board cut. Other options include a tax cut for pensioners; a tax cut for certain types of economic development projects or even a rebate. That’d mean you’d get a check from the state. Rants says it all depends on what the federal tax looks like.
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