The city of Iowa’s proposal to cut corporate taxes may help small businesses in the state, but data shows it will only help large business companies. Gov. Terry Branstad of Iowa propose to cut corporate taxes by 50 percent because he believe that small business can benefit from it for more of their income and sales are said to be in the state. While Iowa plans to reduce corporate taxes, Burlington, the largest city in Vermont voted for an increase in the town’s property tax rates for Fiscal Year 2011.
Residential property tax rates will increase to $11.50 from $10.90 for every $1,000 of evaluated market value. For commercial property tax rates, it will increase to $30.80 from $29.70 for every $1,000 of evaluated market value.
Data from the Iowa Department of Revenue shows that there are only
Companies who trade exclusively within the state, which is said to contribute by 19 percent of the total corporate taxes collected by the state from the entire business community.
According to data from the Department of Revenue, about 65 percent of the total collected corporate taxes are from 885 business companies with over $25 million in sales or — $142 million of the nearly $219 million collected revenues.
About 33,000 corporate companies will be affected with the governor’s plan, but 43,000 S corporations, which consist of shareholders that pay taxes individually, will not be affected.
Branstad claimed that the state’s rates for business taxes are the highest in the nation, but the Iowa City research group, Iowa Policy Project states the state’s rates are light or precisely ranked 36th lowest nationally compared to Wisconsin, North Dakota, Minnesota, Kansas, Nebraska and Illinois.
The Missouri is the only state that ranks lower than Iowa in term of corporate taxes.