Democrats predict approval of tax overhaul - KWWL - Eastern Iowa Breaking News, Weather, Closings

Democrats predict approval of tax overhaul

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DES MOINES, Iowa (AP) -- Democratic legislators are predicting approval for an overhaul of the state's income tax system, saying farmers and small businesses will be among the big winners.

Leaders in both the House and Senate announced Tuesday that the bill will be debated in the next day or two and they predicted approval this week.

Supporters say the tax package would offer a tax cut to small businesses and that 80 percent of farmers would see either no change or a decrease in taxes.

The overhaul would eliminate the ability of Iowans to deduct federal tax payments when calculating state tax liability, using the $600 million that would generate to lower income tax rates.

Critics say the plan will increase income taxes by more than $400 million over the next five years.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

APNP-04-14-09 1111CDT

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