Des Moines, Iowa — This past week, Governor Kim Reynolds approved the plan that will shrink Iowa’s individual income tax to a single rate of three-point-nine percent next year. Lawmakers say it will amount to a billion-dollar cut in state income taxes.
Reynolds signed an income tax cut in 2018 that was billed as the largest in state history. This is the fifth time she’s approved legislation that reduces income taxes. A group of Republican lawmakers and a few lobbyists joined the governor for a bill signing ceremony in her statehouse office.
Two years ago, the governor signed a bill that eliminated the state income tax on retirement income and whittled down the corporate income tax rate. Last year, a plan to contain property tax growth became law.
Democrats who have opposed the tax cuts say Republicans are prioritizing cuts for wealthy Iowans and corporations while cutting tax revenue to the point the state will be unable to support schools and other priorities.
