Des Moines, Iowa — Governor Kim Reynolds has set a goal of getting rid of the state income tax by the end of 2026, but Reynolds says she decided not to push for an interim step this year.
Reynolds and the rest of the nation’s governors are meeting in Washington, D.C. this weekend and the governor made her comments at a forum sponsored by the Cato Institute, a libertarian think tank. Reynolds says 15 of her fellow Republican governors are proposing tax reductions in their states this year.
Reynolds has signed three tax cut packages since taking office in mid-2017. The one she signed a year ago will reduce the individual income tax to a single rate of three-point-nine percent in 2026.
The state budget plan Reynolds presented to the legislature in January would spend just 82 percent of the tax revenue the state is projected to collect in the next fiscal year.
