Northwest Iowa — Iowa Governor Kim Reynolds has released an outline of her preferred approach to state income tax changes. Her fellow Republicans in the legislature describe the document as a springboard to a larger tax cut package.
Senator Randy Feenstra of Hull is the chairman of the committee that drafts tax policy. He says the governor’s outline is a great starting point.
For example, the governor does not call for cutting the state’s corporate income tax. Feenstra says Senate Republicans want that to be in the mix. The governor’s plan phases in the tax cuts to individuals over a six year period. Feenstra says Republicans in the Senate favor something quicker, along with an attempt to simplify the tax form itself.
Many small business owners report the profits or losses of their businesses as personal income rather than file taxes as a corporation. Iowa Senate Democrats say it’s unclear whether the governor’s tax plan “will fix the state’s budget mess or make it worse.”