A study says the poorest Iowans paid nearly double the percentage of their income in taxes than the wealthiest paid, a gap the authors argue underscores the need to reform Iowa's tax system.
The study by the Child and Family Policy Center showed that Iowa families making less than $20,000 annually paid roughly 11 percent of their income in state and local taxes. Earners averaging nearly $1 million paid 7.4 percent in taxes, but that was reduced to 6 percent because federal tax payments are deductible when calculating state tax liability.
Charles Bruner, director of the Child and Family Policy Center, says Iowa's sales tax has increased twice in the last 17 years, while income taxes have been cut by 10 percent. He says that change hit low-income people harder.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The study by the Child and Family Policy Center showed that Iowa families making less than $20,000 annually paid roughly 11 percent of their income in state and local taxes. Earners averaging nearly $1 million paid 7.4 percent in taxes, but that was reduced to 6 percent because federal tax payments are deductible when calculating state tax liability.
Charles Bruner, director of the Child and Family Policy Center, says Iowa's sales tax has increased twice in the last 17 years, while income taxes have been cut by 10 percent. He says that change hit low-income people harder.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
