Statewide Iowa — Iowa’s Republican Governor and Republican legislators announced a tax agreement Friday night, but the legislation to implement the plan was still being written over the weekend.
For his part, Senator Randy Feenstra, a Hull Republican, says for tax year 2019, the cuts will be solely on individual imcome taxes.
Corporate tax cuts will take effect a couple of years from now.
Republicans promise to get rid of a STATE deduction for federal taxes that makes Iowa’s income tax rates look higher than they are, when compared to other states, but Feentra says it won’t happen immediately, and it won’t happen unless state tax revenue grows by at least three-and-a-half or four percent annually.
Governor Kim Reynolds unveiled a framework for tax cuts in February, but it took a couple of months for Republicans in the House, and weeks for those in the Senate to hammer out a deal all in the GOP could live with.
Feenstra is Chairman of the Senate Ways and Means tax-writing Committee.
The leader of the Iowa Democratic Party says Republicans are giving tax cuts to the wealthy and special interests in the midst of a state budget crisis. Troy Price, the Iowa Democratic Party’s Chairman, says Governor Reynolds and her fellow Republicans are engaged in a “budget-busting free-for-all” for corporate donors.
