IA Tax Cut Proposal Passes
The Iowa House has passed a tax cut proposal that would move the state to a 4% flat income tax over four years and repeal all state taxes on retirement income beginning next year. The plan approved Wednesday is similar to one backed by Gov. Kim Reynolds except it does not include her proposed corporate income tax cut. Democrats unsuccessfully attempted to amend the bill to increase benefits to Iowans with lower to middle class incomes or provide additional money for child care. The bill passed 61 to 37. It drains $1.6 billion from state revenues by the sixth year. Democrats predict future program cuts or tax hikes but Republicans say the state will have adequate revenue to fund the priorities of Iowans.