Statewide Iowa — Iowa Senate Republicans have released a tax plan to lower the state income tax to three-point-six percent within five years.
Governor Reynolds has proposed a four percent rate within four years. A mechanism in the bill could eventually eliminate personal income taxes altogether. Senate GOP Leader Jack Whitver.
The Senate GOP bill includes Governor Kim Reynolds’ proposal to eliminate taxes on retirement income and provides a tax break for retired farmers. Whitver of Ankeny says when fully implemented, the plan will reduce state income taxes by two billion dollars.
The plan cuts the corporate income tax rate along with changes to reduce tax credits and exemptions for businesses by 140 million dollars. Whitver says it’s an attempt to reform how corporations are taxed.
The plan includes a maneuver that reclassifies local option sales taxes as a statewide tax. Whitver says the move would let lawmakers put other state funds in the voter-approved account voters approved in 2010 to pay for water quality and outdoor recreation projects.
House Republicans plan to release their own tax plan soon and promise it will not raise taxes for any Iowan. The Senate’s Democratic leader says the plan Republicans in the Senate have released will result in higher taxes overall and cuts to state services.
