Right before Gov. Reynolds went on national TV this week, she signed into law a tax plan (HF 2317) that will give super-sized financial rewards to the ultra-rich, and bite-sized tax cuts to nearly everyone else.
I voted against the Republican bill because I believe in a fair tax system—not increased tax giveaways to corporations, millionaires, and special interests. The Republican tax plan rewards the extremely wealthy—not working Iowans and small businesses. Under the plan:
- -About a one-third of Iowans won’t gain a single penny in tax relief.
- -Millionaires get an average tax cut of $67,000 every year.
- -$265 million will go to the largest corporations.
Senate Democrats’ tax plan rewards work
I believe in supporting a fair tax code and tax policies that reward working families and Iowans who make up our middle class. That’s why I supported efforts this year to:
-Expand tax relief for working families. I support doubling the Earned Income Tax Credit. This tax credit is proven to move families out of poverty and provide economic security. It would have provided more relief to Iowa families than the Republican plan.
-Make child care more affordable and available for Iowa families by expanding the existing credit for families with child care expenses. Iowa has lost 33% of its child care businesses over the last five years, and child care costs are steep. Iowans spend 15% of their income for child care—double what U.S. Department of Health and Human Services says a family should reasonably pay.
-Provide an immediate tax cut to every Iowan making $250,000 or less, while still having the resources to invest in stronger communities, teacher pay and better schools, public safety and public health.
Republican tax plan rewards wealth
The Republican tax plan rewards wealth, not work. Under their plan, the very companies that are raising prices, posting record-setting profits, and driving inflation are getting rewarded for that behavior.
The ultra-rich will get a tax cut that is more than 100 times greater than that of an average Iowa family. According to the Iowa Department of Revenue, the 3,000 Iowans who earn more than $1 million per year will receive an average tax cut of $66,879—or about $1,286 dollars per week. In contrast, the average Iowa taxpayer will receive a net benefit of $593 or about $11.40 per week from the Republican tax plan.
I believe in tax fairness and tax justice. The Republican tax plan that was signed into law is neither fair nor just.