State Capitol. (RI photo)

Democrats in the Iowa House and Senate are proposing an increase in the state’s child and dependent care tax credit as well as a doubling of the earned income tax credit.

“Democrats believe we need a fair tax system, not more Republican tax schemes,” House Minority Leader Jennifer Konfrst, a Democrat from Windsor Heights, said this morning. “That means we’re ensuring there are no corporate tax giveaways, no new tax giveaways to corporations, no new tax giveaways to millionaires, no new tax giveaways to special interests.”

Democrats oppose the tax cut for corporations that’s in the governor’s plan and the Democrats are taking a targeted approach to personal income tax cuts rather than the overall rate reduction Governor Reynolds and her fellow Republicans in the legislature have proposed.

Senate Minority Leader Zach Wahls (said Democrats will introduce their tax ideas as amendments when the GOP tax plans come up for debate in the House and Senate.

“Our tax plan rewards work, not wealth,” Wahls said. “We believe that we need to support Iowa workers who are the backbone of our economy with lower costs and tax cuts rather than what Republicans want to do which is supporting the super rich and corporations who continue to get richer while working Iowans get left behind.”

Republicans on the Senate Ways and Means Committee today approved the wide-ranging tax plan the Senate GOP released last week. It includes a tax break for banks and a new method for providing state money for water quality and outdoor recreation project. It also aims to reduce the personal income tax rate to 3.6% within five years.