Iowa Republicans proposed tax cut plans
CEDAR RAPIDS, Iowa (KCRG) - Gov. Reynolds, Iowa House Republicans, and Iowa Senate Republicans, have all released their proposed tax cut plans. All of which propose lowering income taxes.
The 3 plans slightly vary but they all agree on eliminating retirement taxes. Retirement taxes include being taxed on a pension and 401k earnings. The state already does not tax social security benefits.
“My father moved to Florida because of that. So he didn’t have to pay taxes. I know he would have stayed here in Iowa if he didn’t have to pay taxes. So that’s why I think it’s it’s great that we’re doing this,” said Rep. Steven Bradley (R), District 58.
“We’ve seen it be very effective in states like Texas, Florida, that once they eliminate that money goes back to Iowans, and they reinvest it in their communities in a much more effective way than government ever could,” said Iowa Sen. Zach Nunn (R), District 15.
In addition to dropping taxing retirement income, Governor Reynolds and House Republicans want all Iowan’s to pay a flat tax rate of 4%. Senate Republicans are hoping to lower that number even more to 3.6% and eventually do away with income tax entirely.
“Senate Republicans are very committed to seeing Iowa eliminate the income tax altogether,” said Iowa Sen. Zach Nunn.
Democrats are skeptical of Republicans’ plans.
“We want to make sure that we continue to have the funding to fully and adequately fund education, the childcare issues as well as making job training and apprenticeship programs more available and more affordable,” said Iowa Sen. Pam Jochum (D), District 50.
Senate Republicans want the sales tax to increase across the state to pay for water quality efforts and no group has consensus on how much to reduce corporate taxes.
But with Republican majorities in the house, senate, and Governor’s office, Democrats’ efforts to dissuade any aspect of their tax plan will be limited.
Democrats have not yet released their proposed tax cut plan.
Copyright 2022 KCRG. All rights reserved.