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A proposal to change Iowa's income tax system introduced by Democratic leaders in the Legislature has divided lawmakers serving Webster County.

The plan would end the practice of deducting the amount Iowans pay in federal income taxes from their state tax burden. At the same time, income tax rates would be reduced.

But Democratic leaders have some work to do, even among members of their own party, to pass the measure.

During an Eggs and Issues forum Saturday morning at Iowa Central Community College state Sen. Daryl Beall, D-Fort Dodge, and state Rep. McKinley Bailey, D-Webster City, said they're in favor of eliminating what's known as federal deductibility.

State Rep. Dolores Mertz, D-Ottosen, said she opposes the change.

State Rep. David Tjepkes, R-Gowrie, said he's very skeptical about the proposal and the timing of its introduction by Democratic leaders.

State Rep. Helen Miller, D-Fort Dodge, didn't offer a firm opinion on the measure, but noted that it grew out of an effort to help Iowa families that are suffering through the recession.

''Once again, we're looking at every way to help those families,'' she said.

State Sen. Rich Olive, D-Story City, didn't offer any opinion on the bill.

Beall said the plan would reduce state income taxes for two-thirds of Iowans. He said people who earn less than $125,000 a year would benefit from it.

The drop in income tax rates included in the bill would make the state more inviting to businesses, Beall and Bailey agreed.

''It would make Iowa, I believe, much more fair and I think much more attractive to investors and entrepreneurs who want to create good-paying jobs,'' Beall said.

Mertz said she fears that income tax rates will go up if the federal deductibility is ended.

Tjepkes said he finds it ''perplexing'' that such a major issue is being introduced in what's likely to be the final weeks of the 2009 legislative session. Senate leaders are talking about adjourning on April 10.

The proper way to handle such a change, Tjepkes said, is to direct a committee to study it while the Legislature is not in session, then have extensive debates on it.

He said he doesn't agree with the belief that federal deductibility creates a tax burden that scares away investors. He added that the proposal will raise the income tax rates on those who earn more than $125,000 a year.

''You've got to stay away from that class envy,'' he said.

About 60 people attended the forum. Eggs and Issues is sponsored by the Fort Dodge Area Chamber of Commerce and Iowa Central Community College.

Contact Bill Shea at (515) 573-2141 or bshea@messengernews.net