A Democrat in the Iowa Legislature says it may be time for a “Branstad Rule” since Governor Branstad revealed this past Friday that he paid just $52 in state income taxes in 2011.
Senator Rob Hogg, a Democrat from Cedar Rapids, supports getting rid of the tax break Branstad legally used to reduce his state income taxes.
“He earned $190,000 and his sum total of his state tax bill was $52,” Hogg said. “So some people talk about nationally we need a “Buffett Rule’. Maybe in Iowa we might need a Branstad Rule.”
President Obama and Democrats in congress have been pushing to raise taxes on wealthy Americans, arguing Omaha investor Warren Buffett pays a tax rate that’s less than his secretary pays.
Governor Branstad’s income has declined by more than $100,000 since his return to the governor’s office. His 2011 state tax bill was significantly reduced because of the state tax break that lets Iowans deduct what they paid in federal taxes before calculating their Iowa income tax liability. Senator Hogg said this shows it’s time for “comprehensive” tax reform.
“To me, it raises some questions about a fairness of a tax system where a person making $190,000 a year pays $52 in state income tax,” Hogg said.