Too often, we hear elected officials talk about increasing government spending while trying to convince you about all the good things they will do with your money.
However, this week, Iowans saw our state's leadership continue to push hard to elevate tax cuts above other issues and make family budgets a priority.
Governor Reynolds' Plan
Talking about her proposal, Governor Reynolds said, "There's never been a better time for bold, yet practical tax reform that meets the priorities of the state, allows Iowans to keep more of what they earn, and creates a highly competitive tax system. This historic tax cut will benefit every taxpayer, and turbocharge widespread, broad-based prosperity in our state, and most importantly, it rewards hard work."
House and Senate Republican Plans
Income tax reform legislation moved quickly through both House and Senate subcommittee meetings this week.
ITR's Victoria Sinclair spoke at both hearings. Speaking to House subcommittee members, she said, "We applaud the governor's leadership in rolling out a bold plan that significantly reduces income taxes for all Iowans, and we commend House leadership for including her individual income tax reduction proposal within this legislation HSB 626."
At the Senate subcommittee hearing, Sinclair said SSB 3074 "proposes the largest individual income tax cut in Iowa history, and it doesn't stop there. Not only does this bill offer a flat individual income tax rate of 3.6%; it also provides the first mechanism to our knowledge for eliminating the individual income tax in Iowa. This is an outstanding bill that cuts taxes for every Iowan, and we encourage its advancement."
How Do the Three Tax Reform Plans Compare?
Iowa's individual income tax will be no higher than four percent in the near future.
Click on the image to see ITR's tax plan comparison. We encourage you to download and share this information!
In a Des Moines Register article, Governor Reynolds said everything is on the table in tax cut talks. “I’ve made the commitment: We’re going to look at all three bills, and we’re going to sit down and see where we end up,” Reynolds told reporters during a news conference in Des Moines. “I just believe we’re going to end up in a good place.”