Iowa Senate panel OKs tax break for low income

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March 12th, 2013 by Ric Hanson

DES MOINES, Iowa (AP) – Low income Iowa residents would get a bigger break on their taxes under a bill that is moving through the state Senate.  Democratic Sen. Joe Bolkcom says Tuesday that the measure would apply to households with incomes of less than $45,000. He says about 210,000 households would get a roughly $250 tax break.  The proposal would raise the state credit from 7 percent to 20 percent of a taxpayer’s federal earned income tax credit.

The Senate Ways and Means Committee approved the bill Tuesday and will now go to the full Senate for a vote. But while Democrats who control the Senate support the effort, it may have little chance of becoming law. Gov. Terry Branstad has vetoed similar legislation in past years.