Gov. Reynolds Previews Flat Tax and More During Condition of the State

Photo: Wendy Wilde

(Des Moines, IA) -- Throughout the 2022 Condition of the State, Governor Kim Reynolds outlines where Iowa is, and features plans on where she'd like the state to go.

During the 2022 Iowa Legislative session, Iowa's governor wants to see an overhaul in the state's income tax system. Specifically, Reynolds introduced a flat tax bill.

"It eliminates our complex system of multiple tax brackets, and sets one tax rate of 4%, flat and fair," states Gov. Reynolds. She says her plan would help the average Iowa family pay $1,300 less in income taxes by 2026.

Iowa legislative Democrats say there's a lot of unknown in the four-percent flat tax.

"We need to know what this is going to cost, what services are going to be cut, what will the true impact be on all Iowans," says Democratic House Minority Leader Jennifer Konfrst. "We're hearing so many different things from the House [of Representatives] and the Senate. This is far from a done deal."

Representative Konfrst tells Iowa PBS that a flat tax rate will benefit upper class Iowans more than those in the middle and lower class.

Next, Governor Reynolds calls on the Iowa Legislature to expand a grant program creating more childcare facilities.

"Because of the overwhelming number of outstanding applicants, I'm announcing that the state is expanding [the Childcare Challenge] to provide another 5,000+ childcare openings across the state," states Gov. Reynolds.

She says the state created 4,000 new childcare spots in 2021.

A Democratic Senator says affordability is the bigger issue when it comes to childcare.

"This is the make or break issue for a lot of families, and the cost of childcare is astronomical," says Windsor Heights Democratic Senator Sarah Trone Garriott. "I was paying more than our mortgage for our two children to be in childcare."

Senator Garriott says the state also needs to find a way to make sure childcare workers are paid more.

Governor Reynolds moves next to education, specifically to thank Iowa's teachers.

"I’m announcing tonight that we’ll use federal ESSER funds to award a $1,000 retention bonus to teachers who stayed on the job through the pandemic, and who will continue teaching next year," states Gov. Reynolds.

She says the retention bonus comes as a reward for Iowa teachers who stayed in the classroom in the midst of the pandemic, when others quit.

A Democratic legislative leader says Iowa needs to change the climate around education.

"It's not just trying to recruit more folks, it's not just trying to offer a little bit more money," says Senator Garriott. "It's also about changing that climate to make sure our teachers know they're valued, and that we stress that they're important members of our community, and we don't treat them like they're enemies."

She says the state also needs to help teachers avoid burnout.

As Reynolds spoke on the issues of the past year, she touched on the unemployed in Iowa, stating how she plans to fix the state's workforce problem.

Reynolds would go on to say it's time to stop paying people not to work.

"I’ll be introducing a bill that lowers benefits to 16 weeks—about four months—and ensures that those collecting unemployment can’t turn down suitable jobs while living on taxpayer funds," says Gov. Reynolds."

A Democratic House leader says there are bigger issues in expanding Iowa's workforce.

"Recruiting new talent into our state means we need to have affordable housing, we're going to need to have good jobs with good wages," says Dubuque House Minority Whip Lindsay James. "We need economic opportunities for our families. An opportunity that pays well, but also gives them an opportunity to grow and move up."

She says the Legislature can help working families in Iowa by passing laws that do things like making health care more affordable.

Governor Reynolds ended her Condition of the State address with the following:

"Thank you, God Bless you, and God Bless the great State of Iowa."


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