DES MOINES, IOWA (AP) -- Gov. Chet Culver is calling for a $120 million tax cut for middle class Iowans, saying his plan stands in contrast to Republican Terry Branstad's support for business tax breaks.
Culver on Tuesday announced plans to cut taxes for individuals who earn $100,000 annually or less, or couples who make $200,000 a year or less. Culver says his plan would mean a tax cut for 980,000 of Iowa's 1.5 million tax filers.
He ways the state can afford the tax cut because revised revenue forecasts indicate that the state will collect $300 million more in taxes than initially projected for the current budget year.
Culver says he wants to return money to taxpayers, while Branstad support business tax cuts.
Branstad spokesman Tim Albrecht says Culver's proposal was an effort to pit Iowans against one another.
(Copyright ©2010 by The Associated Press. All Rights Reserved.)
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