Reynolds says now is the time to gather around tax reductions despite differing plans
SIOUX CITY (KTIV) - Iowa Republican Gov. Kim Reynolds has proposed an income tax decrease, but leadership in the State’s Assembly have different ideas on what that looks like.
Reynolds tax policy calls for gradually reducing the individual income tax rate to 4%. But Iowa State Senate Republican leadership has proposed a 3.6% mark.
Reynolds would also reduce the corporate tax rate each year the state’s revenue surpasses 700-million - down to a floor of 5.5%
However, Iowa House leaders propose a plan that doesn’t change the corporate tax at all, though the House plan would adopt Reynolds’ ultimate tax rate at 4%.
Reynolds acknowledged the differences at a visit to Sioux City Friday but urged the Assembly to tackle both corporate and individual income tax at the same time.
“I think this is the time to really tackle all of it, we can do it and do it in a responsible manner. So I feel really good about the opportunity to get something done this year and really move this state forward,” said Reynolds.
All three plans from the Senate to the House and Governor’s office would eliminate the state’s tax retirement income.
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