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LT. GOVERNOR JUDGE CELEBRATES EARNED INCOME TAX CREDIT AWARENESS DAY

Calls on Iowans to support closing corporate tax loophole

DES MOINES – Today, Lt. Governor Patty Judge held a press conference with the EITC & Beyond Coalition and several state legislators to celebrate Earned Income Tax Credit (EITC) Awareness Day. 

“Governor Culver and I are committed to helping all Iowans reach their fullest potential,” said Lt. Governor Judge.  “This is why we were proud to sign legislation last year that raised Iowa’s EITC to 7%, giving a tax break to more than 164,000 families across the state.  This work will help us as we build one Iowa, with an unlimited future for everyone.”

EITC Awareness Day is a national event designed to ensure hard working families know about the EITC and how to claim it. In Iowa, families may be eligible for up to $4,716 from the Federal EITC, and up to $330 from the Iowa EITC. For families that owe little or no tax, both the federal EITC, and for the first time the Iowa EITC, are available as refunds.

During the conference, Lt. Governor Judge also called on Iowans to help raise the EITC in the future by supporting a proposal to close an unfair tax loophole, which will bring in new state revenue and create a level playing field for Iowa’s small business owners.

“If we are to raise the EITC again, we must find the resources to do it, and we have found a fair and equitable way to do it: close the corporate reporting tax loophole,” said the Lt. Governor.  “By doing so, we will raise the resources needed to support programs like children’s health insurance and universal preschool.  But most importantly, it will give us the flexibility to once again raise the EITC and put more money in the pockets of Iowans.”

Combined corporate reporting will end the competitive disadvantage facing Iowa small businesses by requiring companies not headquartered in Iowa to pay Iowa taxes based on their profits made within the state, which they are currently not required to do.

More than 20 states already have combined corporate reporting laws – seven of which are listed on the Forbes Magazine 2007 listing of the “Top Ten States for Doing Business.”
 
The EITC & Beyond Coalition is a unique collaboration of public, private and nonprofit organizations led by Iowans for Social and Economic Development (ISED) in partnership with the Internal Revenue Service (IRS), the Department of Human Services (DHS), United Way agencies, community action agencies and many more Iowa businesses and community based organizations.

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