DES MOINES – Gov. Kim Reynolds and Iowa House and Senate leadership announced an agreement on a relief and reform package, billed as the largest of its kind in state history.
The tax reform package aims to reduce rates and eliminate federal deductibility, simplify the tax code and reduce the number of individual tax brackets to four, when the plan is fully implemented in 2023.
The Governor's Office says the plan immediately provides an average tax reduction of nearly 10-percent.
Backers maintain the plan will mean the following:
A single taxpayer with no children making $25,000 will see a 22.3% tax reduction
A single taxpayer with one child making $48,000 will see a 25.8% tax reduction
A couple with two children making $75,000 will see a 25.7% tax reduction
Iowa Democratic Party Chair Troy Price released the following statement in response:
“It’s no surprise that, in the middle of a budget crisis of their own making, Kim Reynolds and her Republican allies would still find the money to give their special interest and corporate donors a tax giveaway. Iowa deserves leaders who will invest in our communities and give us the tools, like education and health care, to grow our economy, not sinking all our tax dollars in to these budget-busting free-for-alls for Reynolds’ campaign donors.”