State Tax Reform Study Committee (J)

Charge

To study and make recommendations on the impact of the 1986 Federal Tax Reform Act on individuals in Iowa, and include recommendations on whether it is beneficial for the state to make changes in the area of "coupling" with federal tax code changes. The Committee should also examine whether maintaining deductibility of federal income taxes with higher state income tax rates is more beneficial to the state than eliminating deductibility and lowering state income tax rates. The Committee should review and comment on various methods to reduce the regressive nature of the sales and use tax, and document the total tax impact and progressivity, fairness, and competitive advantages or disadvantages of Iowa's sales, use, income and corporate taxes relative to the surrounding states. The committee's meetings shall be completed by October 15, 1987, and its report presented to the Legislative Council no later than November 15, 1987.