| 11/10/2008 | |
| Who Pays Iowa Taxes? | |
| Lower-Income Iowans Pay the Most as Share of Income | |
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Iowa's state and local tax system favors the highest-income families in the state — a fairness problem compounded by the net effect of two decades of policy changes. News release, backgrounder. |
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IFP backgrounder |
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WHO PAYS IOWA TAXES? |
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As Share of Income, Lower-Income Iowans Pay the Most |
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Each of the three major taxes that make up Iowa’s state and local tax system has a different impact when considered alone, but must be considered together in order to evaluate the total effect of Iowa’s tax structure. Further, an accurate assessment of that impact must consider the net effect after federal tax deductions for those state and local taxes — the “federal deduction offset” included in Figure 1 and Table 1. Figure 1. Iowa’s State & Local Taxes Favor High-Income Earners
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