Medlin Software, Dennis Posted October 30, 2018 Report Share Posted October 30, 2018 Iowa has published their 2019 withholding and bracket parameters. IA is in the beginning stages of not using federal tax as part of their tax system! https://tax.iowa.gov/news-release/release-idr-announces-2019-interest-rates-standard-deductions-income-tax-brackets https://tax.iowa.gov/sites/files/idr/documents/IA Withholding Formula and Instructions TY2019.pdf --- This article lays out the problems of using federal tax as part of state taxation, and estimated IA gained $138 million from the latest federal tax reform. https://taxfoundation.org/iowa-cut-rates-repeal-federal-deductibility/ "Repealing federal deductibility is a worthy goal in its own right, as this anachronistic policy ties Iowa’s tax code to federal policy in unexpected and often undesirable ways. When federal taxes go down, Iowa taxes go up. When the federal government provides preferential treatment of something—from the child tax credit to research incentives—Iowa penalizes it. High earners, because they have higher federal effective rates, see their Iowa tax liability reduced, while low-income filers, because they have little or no federal tax liability, get scant benefit from the deduction. This undermines the state’s progressive rate structure, but the result isn’t a flatter tax, just a more distorted one. " 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.