Iowa Gov. Reynolds Proposes Four Percent Flat Tax
January 13, 2022 | Iowa
Iowa Gov. Kim Reynolds on Tuesday proposed a tax cuts omnibus in her fourth Condition of the State speech.
“Under these high ceilings, next to this marble, among these columns and portraits, it’s tempting to believe that nothing good happens unless we legislate it, regulate it, or fund it. But in the small towns, around kitchen tables, in the fields and back-offices, Iowans understand that we in this building don’t fund anything. They do,” the Republican governor said. “And right now, they’re paying too much.”
The state’s possession of a $1.2 billion surplus and $1 billion cash reserves means the state is collecting too much money from taxpayers, she said.
Reynolds proposed eliminating tax brackets over the next four years to make way for a 4% flat tax rate for all taxpayers.
“In the first year alone, taxpayers will save almost $500 million,” she said. “And by 2026, when the bill is fully implemented, an average Iowa family will pay over $1,300 less in taxes. And that’s on top of their $1,000 tax cut from the 2018 bill. Now that’s money that can be reinvested in our economy and used to promote the prosperity of every Iowan.”… (Excerpts from the Virginia Star)
