Iowa considering a "tax on a tax" - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa considering a "tax on a tax"

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DES MOINES, Iowa (AP) -- Democrats are again raising the possibility of changing Iowa's tax laws to end the ability to deduct federal taxes when calculating state tax liability.

It's an issue that has come up repeatedly over the years, with Democrats arguing the rule favors the wealthy and forces the state to have artificially high income tax rates to allow the tax break. Iowa is among a handful of states that allows such deductions.

Opponents of such a move label it a "tax on a tax."

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