Republican challenger says Governor’s plan is too taxing for Iowans working in Illinois

Doug Gross, a republican candidate for Governor, is calling on democrat Governor Tom Vilsack to dump the plan to start collecting Iowa taxes from Illinois residents who work across the border in Iowa. Gross says it’s a bad idea because it divides economic units along the river, like the Quad Cities. He says it’s equivalent to putting a billboard as you cross the river into Iowa that says “Welcome to Iowa, home of high taxes.”Gross calls it an “Eastern Iowa Tax Increase” as it’ll highlight the fact Iowa’s income taxes are higher than Illinois’. He says it also increases the paperwork burden on taxpayers. Vilsack responded, saying it’s not a tax increase, it’s a tax cut. Vilsack says Iowans who work in Illinois will have to pay Illinois income taxes, which are lower than Iowa’s — so no Iowan will see their taxes increased. Vilsack says Illinois residents who work in Iowa now use Iowa government services, but don’t pay for them.Gross has challenged Vilsack to debate the issue in the Quad Cities.