SMALL BUSINESS PRAISES HOUSE FOR FLAT TAX OPTION
DES MOINES (April 2, 2015) Today the National Federation of Independent Business (NFIB) is commending the House for providing hard working Iowans with options when it comes to paying their taxes. Three Republicans on an Iowa House subcommittee approved HF 604 that would allow residents filing their income taxes to choose between two options: the current structure with multiple potential deductions, or with limited deductions but the added bonus of paying a flat tax rate.
“This is a vital option to small businesses in Iowa because we all know that lower taxes mean more money in people’s wallets that can be used to infuse the state’s economy.” Said NFIB Iowa State Director Kristin Failor, “Main Street thrives on fiscal stability and the side effect of increased spending in our small businesses will be increased job growth.”
While it is unclear what, if any, action the Senate will take, a similar bill introduced in 2013 that was ultimately defeated placed the flat tax rate at 4.5% when detractors argued that it would result in a decrease in annual revenue for the state.
“What opponents of this plan fail to understand is that any revenue lost as a result of the flat tax option will be well made up for by both the gas tax increase of 10 cents per gallon, and broadening the tax base with taxes collected by businesses and employees as hiring increases. Promoting economic growth should be at the top of everyone’s agenda in both the House and the Senate and as far as small business is concerned, this is the perfect first step to do so,” Continued Failor.
