Gov. Tom Vilsack expressed concerns Monday with a plan pushed by some lawmakers that would allow Iowa’s border communities to drop the state income tax for their residents to make rates more comparable with neighboring states such as Illinois.
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A bill that has cleared a House committee would allow residents in those communities to vote to do away with state income taxes. But in exchange, they would pay higher property and sales taxes to make up for the revenue lost to the state.
This measure's impact on the Iowa Quad Cities is tempered by the glaringly obvious fact that a large majority of development is already flowing to the Iowa side of the Mississippi.
My understanding is that the biggest push for this is coming from Sioux City and the area near South Dakota (having no income tax at all).
ReplyDeleteThat's correct. I believe it references this in the linked article.
ReplyDelete