Sales Tax Could Increase In Iowa
Iowans, prepare to think about paying more at the cash register.
A discussion is underway among the legislature in Des Moines to raise the state's sales tax by another 1 percent, and it seems to be gaining traction on both sides of the aisle.
Talks are beginning toward raising the 7 percent consumer sales tax to 8 percent, but it may not be that simple. Republicans want to use more of the $500 million that could be generated by this tax increase toward relief for property and income tax. Democrats would want to use it for mental health care initiatives.
A constitutional amendment passed by Iowa voters would require the extra revenue to go to environmental issues. So it seems the problem is if the tax increase is passed, there's no clear-cut way the extra money would be used. It's also an election year, which legislators fear gets the issue lost in the shuffle.
They're also not in any hurry, as they're willing to take the entire legislative year to work it out if necessary.
Would you support a sales tax increase if it could give you relief on your property or income taxes?