Iowa House and Senate members will assemble May 29 for a special session to discuss the future of Iowa’s economy. However, the democrats and republicans still haven’t come to a consensus on the important details of this issue.

When the regular session ended May 1, the House passed the $810 million Iowa Values Fund, focused on reforming the property tax system and reducing income taxes.

Rep. Jane Greimann, D-Ames, said the fund had bi-partisan support.

Members of the Senate, on the other hand, couldn’t reach an agreement concerning the Iowa Values Fund.

Gov. Tom Vilsack, who called for the creation of the Iowa Values Fund in January, is currently working with members of the legislature to reach an agreement on the issue before Thursday.

Rep. Jim Kurtenbach, R-Nevada, said Iowa lawmakers try to reach all agreements ahead of time so issues only have to be debated at the special session, expected to last one to two days.

The future of Iowa’s economy depends on four components: income tax reform, property tax reform, regulatory reform and the Iowa Values Fund, Kurtenbach said.

“The preconception is that the Iowa Values Fund is the primary detail,” Kurtenbach said. However, he said he feels there are two parts of equal importance.

Kurtenbach said he believes most of the Senate and House have agreed on property tax and regulatory reform, which leaves income tax reform and the Iowa Values Fund to be debated.

Federal deductibility and the size of the tax cut will be the main issues of the income tax reform debate Thursday.

The income tax reform would eliminate federal deductibility — paying taxes on income already taxed — and simplify the rates reducing the nine brackets down to three, with the highest rate being 4.8 percent.

Greimann said this reform would benefit the wealthy taxpayers while supporters of this bill insist everyone’s taxes would be reduced. Iowa would lose an estimated $310 million per year in revenue with the income tax reform. Lawmakers are not sure how they will make up for the loss yet.

Republicans have suggested using Internet sales tax to make up for part of the difference. Money to support the Iowa Values Fund will come from gambling revenue and taxes from Internet and catalog sales.

The Senate’s plan would reduce the amount of money allotted to each part of the Iowa Values Fund by millions of dollars. Funding would come from alcohol and cigarette taxes.

“It’s my opinion that the Iowa Values Fund should be passed,” Greimann said.