LOOK EAST: Iowa Leader Focuses On Washington
Iowa’s Republican State Auditor praised the work of lawmakers to use less of what he called “one-time funding sources” to pay for ongoing programs. Monday morning Vaudt offered his analysis of the current state budget. He said two years ago, lawmakers spent $1.14 for every $1 it took in general revenues expenses. During this latest budget, lawmakers spent $1.03 for every $1.
Vaudt pointed out a money matter for Iowa leaders. President Obama announced he wants to maintain current tax breaks for families making less than $250,000 a year. But he would end some breaks for those making more than that. The president said, “My message to congress is this — pass a bill extending tax cuts to the middle class. I will sign it tomorrow. Pass it next week, I will sign in next week.”
Federal tax cuts affect Iowa’s revenues. Iowans deduct the amount they pay in federal taxes from their state income taxes. If Congress can’t agree with the president on the federal tax rates and the current Bush/Obama tax breaks expire, Vaudt expect Iowa to lose $150-175 million a year in revenue.