Vilsack reverses stand on taxing federal refund checks

Governor Tom Vilsack now says he’ll approve the bill which would exempt your federal tax refunds from state taxes. Republicans suggested the move a few days ago, and Vilsack, who’s a democrat, initially expressed reservations. Now, Vilsack says he’ll sign the bill after getting no response from any group that felt it should be done differently.Vilsack’s urging lawmakers to go further. Vilsack wants ’em to eliminate “federal deductibility” which lets Iowans deduct their federal tax bill from their income before paying state taxes. Vilsack says the practice makes Iowa’s tax rates look higher than they are. Republicans say they aren’t interested. Vilsack is laying plans to ask for federal assistance should southern Iowa farmers be unable to get their crops in the ground — or have the seedlings that are in the ground rot in the waterlogged conditions. He says it’s too early to make a request yet, but they want to be prepared.Vilsack says low interest loans are available in some counties which have had storm damage and were declared federal disaster areas.