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House Democrats seek increase in Earned Income Credit

Income TaxBy Bob Eschliman
Editor

 

A group of Iowa House Democrats has offered a bill this week to increase the earned income credit applied to Iowa individual income taxes.

House File 465, authored by state Rep. Charlie McConkey (D-Council Bluffs) and co-sponsored by 16 of his colleagues, increases the amount of the Earned Income Credit to 16.5 percent from 15 percent of the federal Earned Income Credit provided in Section 32 of the Internal Revenue Code. The bill applies retroactively to tax years beginning on or after Jan. 1 of this year.

The Iowa Federation of Labor supports the measure. The Greater Des Moines Partnership, the Iowa Chamber Alliance, and the Iowa Society of Certified Public Accountants are all “undecided” on the proposed legislation.