DES MOINES, Iowa (AP) - Gov. Chet Culver and Democratic legislative leaders have agreed to details of a $600 million overhaul of Iowa's income tax system that they say would leave 74 percent of taxpayers with a cut or no change in their taxes.
Sen. Joe Bolkcom of Iowa City says the new plan agreed to Tuesday will raise the standard deduction as a way to increase the number of people who get a tax cut. He says debate could begin as early as Wednesday.
Under the package, Iowans would lose the ability to deduct federal tax payments when calculating state tax liability. The $600 million generated by the change would be plowed back into lowering all tax rates.
The latest proposal calls for dropping the top tax rate from 8.98 percent to 6.9 percent.
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