|
|
|
Contact: David Hogberg 319-385-3462 Will Iowans Face a Tax Increase? Mt. Pleasant, IA – With the state of Iowa facing a possible budget crunch, will Iowans be paying more taxes when the Iowa Legislature convenes in January? That question is addressed by Public Interest Institute Research Analyst David Hogberg. In a December INSTITUTE BRIEF, Hogberg discusses the economic and political factors that will determine whether or not the state will increase taxes. On the economic side, Hogberg says slow economic growth and higher unemployment means less tax revenue for the state. He says these factors suggest a tax increase could be in the future. The political side of the equation, however, suggests there will not be a state tax increase this year. Hogberg cites statements made by Legislative Leaders who say they are opposed to tax increases. Governor Tom Vilsack also is on record as saying he doesn’t have any plan for raising taxes. Hogberg say the Governor is not totally against raising taxes, however. Governor Vilsack is on record as saying the state’s sales tax system needs to be reformed to reflect the internet age. Hogberg says this shows the Governor’s willingness to extend the sales tax to internet purchases. In conclusion, Hogberg says a tax increase would be the wrong way to solve the state’s budget crisis. He says it would increase the tax burden on Iowa’s families and slow Iowa’s economic growth. For additional information on this INSTITUTE BRIEF, or any other Public Interest Institute publications, you may contact PII at: (319) 385-3462 or log on to the PII web site at: www.limitedgovernment.org. ####
|
