Iowa Republicans say the tax overhaul will spur the economy and put money in Iowans’ pockets
Iowa’s three Republican U. S. House members voted for the tax overhaul package that cleared Congress on Thursday, while the state’s lone federal Democrat voted against it.
GOP U. S. Reps. Rod Blum, Steve King and David Young all voted for the “Tax Cuts and Jobs Act,” praising it in statements after the vote as a badly needed reform that will juice the economy, reward work and simplify tax filing.
The reform slashes corporate and business taxes, provides a range of tax cuts for high earners, and increases the standard deduction for individual filers while eliminating or capping many other deductions .
Analyses show the package will substantially lower taxes for high-earners while providing modest savings for middle- and lower-income earners. After the expiration of key provisions in 2022, many middle-income earners could see their tax bill rise under the bill.
Overall, the package cuts federal revenues by $1.5 trillion – an amount that would be added to the federal debt unless revenues rise by other means or spending is reduced.
“The passage of today’s historic tax reform legislation represents the best opportunity Congress has had in 30 years to reform the nation’s complex and outdated tax code in a manner which will provide Iowans with tax relief, a simpler tax return, and a better economic climate for job creation,” King said in a statement.
He added, “This legislation will result in a flatter, fairer, and simpler tax system that will benefit individuals, families, farms, and small businesses throughout Iowa,” he said.
Young, the 3rd District congressman whose district includes the Des Moines metro, called the bill’s passage “a victory for Iowans.”
“Iowans deserve a tax code that is respecting and rewarding their hard work and protecting a lifetime of savings,” Young said in a statement. “My vote today reflects my trust in Iowans to spend their money better than the federal government.”
Blum, in Iowa’s 1st District, said he would push for reinstating historic preservation tax credits that the bill strips from the tax code, but was otherwise effusive about the package.
“My criteria for tax reform has always been based around these three goals: simplifying tax preparation for families, lowering taxes for the middle class, and reigniting our economy from the doldrums it’s been in the last ten years,” Blum said. “This bill achieves all three of those criteria.”
Democratic U. S. Rep. Dave Loebsack, meanwhile, called the bill’s provisions “unconscionable” and criticized the fast-track process it followed to passage in the House.
“The tax plan that was rushed through the House by Republicans will hurt everyday Iowans,” Loebsack said. “The plan slashes taxes for millionaires, billionaires and corporations, while many middle class families, small businesses, seniors, teachers and veterans will be faced with an increase.”
The U. S. Senate is pursuing a separate tax reform package with many substantial differences compared to the House bill. Ultimately, the two chambers will have to resolve those differences in a single bill.
