Letter to the Editor: Flat is not fair

To the Editor:

Hard-working Iowans deserve a fair tax plan which would ensure that tax cuts go to the middle class and the wealthy pay their fair share.  The bill recently passed by the Iowa Legislature, and signed by the governor, implementing a “flat income tax,” does neither.

Iowans deserve to know the truth about who really benefits from the plan: high income people would see immediate income tax cuts, while middle-class Iowans would not see even small cuts for several years, and many lower income earners would see little or no cuts at all. In fact, under this plan, it will take the average Iowan a century to receive the same tax benefits that the ultra-rich will receive in a single year. How is this fair?

The nonpartisan Legislative Services Agency (LSA) estimates the bill would result in a reduction of $1.9 billion a year in tax revenues when fully implemented in 2028.  The bill’s supporters say that Iowa’s projected growth will be enough to sustain the cuts.

But if this does not happen (economy unstable, inflation rises, etc.), where will the revenue come from to meet the budget needs of our state and our communities? An increase in sales taxes or property taxes? These are flat taxes that already take larger shares of the incomes of middle and lower income families. Or, worse, cutting essential services and education funding? How is this fair?

Tax relief should be carefully crafted so that the savings provide the maximum possible benefit to individuals’ and families’ well-being as well as the state’s economy. We need a tax plan that not only funds our communities fairly but also puts cash in the pockets of all Iowans, not just a wealthy few. A flat income tax that only benefits the wealthy and potentially creates a larger tax burden for hard-working Iowans is not fair.

Katie Dodge Hanson
Lansing