Des Moines, Iowa — The Senate GOP’s five-year plan to cut the state income tax rate to three-point-six percent has cleared the Senate Ways and Means Committee.
The bill also cuts the corporate tax rate, reduces and eliminates some business tax credits, provides a tax break to banks and proposes a new way to finance water quality and outdoor recreation projects. Senator Dan Dawson, a Republican from Council Bluffs, says it’s a tax reform package.
Senator Pam Jochum, a Democrat from Dubuque, says the initial analysis shows the tax cut will amount to no more than 28 cents a week for the more than 560-thousand Iowans who’re at the bottom of the income ladder.
The bill is now eligible for debate in the full, 50-member Senate.
