(Des Moines, IA) -- A key economic report could give more fuel to a bi-partisan effort to reduce the state's income tax. The Iowa Revenue Estimating Conference is projecting modest revenue growth in the next few years.
Iowa Governor Kim Reynolds, who supports a potential income tax reduction to 6.5 percent issued a statement:
"Today’s forecast shows that Iowa’s economy is strong, and we can make it even stronger by ensuring that our historic 2018 tax cuts are fully implemented, giving Iowans certainty that they’ll see more in their paychecks. We can easily do that by removing the unnecessary triggers, which are no longer needed and only stand in the way of our future growth.
“I was pleased that the Senate voted unanimously to remove these triggers and look forward to signing the final bill making these significant tax cuts a reality for Iowans.”
Rep. Gary Mohr (R-Bettendorf), Chairman of the House Appropriations Committee, issued the following statement:
"Thanks to a decade of responsible budgeting by Iowa House Republicans, Iowa’s financial position continues to look strong and our budget has shown great resilience even in the face of a global pandemic.
It is not by accident that Iowa’s budget was ranked as the #1 most prepared to withstand the financial challenges of COVID-19 by the nonpartisan Council of State Governments. It has taken difficult decisions and the disciplined approach that House Republicans have fought for over the last 10 years.
Responsible, conservative budgeting is what got us here. We will continue with that approach as we address the state’s budget for Fiscal Year 2022.“
Statement from Rep. Chris Hall (D-Sioux City), Ranking Member of the House Appropriations Committee, on REC Meeting
“For months we’ve heard Iowa’s economy would be stuck in neutral until more vaccinations arrived. The state appears to be on the path to a strong recovery thanks in part to our resilience, and the huge increase in vaccinations and economic relief provided by the Biden administration.
While it’s overall good news, the partisanship displayed at today’s REC meeting made for a spectacle. The Revenue Estimating Conference exists to provide the legislature and citizens of Iowa with an objective view of the state’s economy and budget. Today, it was apparent the Governor’s office was coaching budget numbers for political gain and to trigger tax cuts.”