Revenue Projected to Meet One Trigger, But Not Both
The triggers are no longer needed and only stand in the way of our future growth.
The Revenue Estimating Conference (REC) met today and project the number of tax dollars pouring into the state's coffers will continue to increase for the next fiscal year (FY 2022). Their estimate predicts Iowa will:
- Have state revenue of $8.386 billion
- Have revenue growth of 3.8 percent
In 2023, the top personal income tax rate is scheduled to be reduced from just over 8.5 percent down to 6.5 percent only if Iowa can reach two triggers:
- State revenue to surpass $8.3 billion
- Revenue growth of at least four percent during that fiscal year
The best analysis of the REC projection was offered by Governor Reynolds herself, “Today’s forecast shows that Iowa’s economy is strong, and we can make it even stronger by ensuring that our historic 2018 tax cuts are fully implemented, giving Iowans certainty that they’ll see more in their paychecks. We can easily do that by removing the unnecessary triggers, which are no longer needed and only stand in the way of our future growth."