Branstad recycles bad flat tax policy

Branstad Recycles Bad “Race to the Bottom” Optional Flat Tax Proposal

Iowa House passed HF 478 on party lines 53-47 in 2013 to create an optional 4.5% flat tax that would overwhelmingly benefit Iowa’s wealthiest citizens at the expense of everyday people, hardworking families, and vital public services

Governor Terry Branstad’s proposal Wednesday to enact an optional flat tax system would overwhelmingly benefit Iowa’s wealthiest citizens at the expense of everyday people, hardworking families, and a state budget that can afford to fully fund vital public services, Iowa Citizens for Community Improvement Action Fund (Iowa CCI Action Fund) members said Thursday.

The governor’s proposal is not new, and in fact is a recycled idea from the 2013 legislative session that passed the Iowa House on party lines 53-47 on March 13.

A flat tax is essentially a giant handout to high-end income earners that don’t need any more tax breaks, and could further reduce badly needed state revenues after corporate property tax cuts and a “steal the surplus” tax rebate passed during the 2013 session have drained state coffers more than enough already.

“Everyday Iowans need to know that Governor Branstad’s regressive, race-to-the-bottom flat tax proposal is not meant to help them in anyway.  This is a handout exclusively for the very wealthy and threatens the ability of state government to fully fund vital public services that hardworking families rely on,” said Cherie Mortice, a CCI Action Fund member from Des Moines.

“Iowa’s wealthiest citizens need to pay their fair share in taxes, they don’t need more options for how to pay less.”

Iowa CCI Action Fund members stood up and spoke out against the optional flat tax proposal when it was debated in the Iowa House and passed by the Tea Party GOP majority during the 2013 session, and say they are more than willing to accommodate Governor Branstad if he wants to have this fight again.

“This is a ‘Which Side Are You On’ type of proposal and Governor Branstad is broadcasting loud and clear that he stands on the side of the rich and powerful, not on the side of everyday people and hardworking families,” Mortice added.

The grassroots, statewide people’s action group says they support progressive changes to Iowa’s tax code that make the very wealthy and out-of-state corporations pay their fair share in taxes while raising more revenue to fully fund good government that puts people first.

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