Statewide Iowa – A key Democrat in the Iowa Senate said the state’s billion dollar Taxpayer Assistance Fund should be used to reduce taxes for working and investing Iowans in schools, hospitals and daycares.
Senator Joe Bolkcom of Iowa City is the first Democrat on the Iowa Senate Tax Policy Committee.
The billion dollars accumulated over the past two years as state tax revenues exceeded official estimates and were deposited into the Taxpayer Relief Fund.
Bolkcom says the latest estimate indicates that more than $ 9 billion in federal pandemic relief money and loans were sent to Iowa under the Trump and Biden administrations and that the state would not have this. billion dollar surplus without it.
As KIWA reported on Monday, Speaker Pat Grassley – the House’s top Republican – said the $ 1 billion was an overpayment that should be returned to taxpayers. Bolkcom says the general personal income tax cut he expects Republicans to pursue mainly benefits the wealthier Iowans.
Bolkcom says he and other Democrats are in favor of increasing the earned income tax credit for low- and moderate-income working Iowans who have little or no savings or investment income.