“Gov. Reynolds and the Republican legislature […] both have introduced prudent tax reform plans that will benefit all taxpayers.”
CEDAR RAPIDS (Feb. 12, 2024) – In an op-ed for The Gazette, NFIB State Director Matt Everson and Iowans for Tax Relief Foundation John Hendrickson outline the provisions of Governor Reynolds’ and the Legislature’s tax reform proposals, both of which would benefit Iowa taxpayers.
In the op-ed, Everson and Hendrickson write:
“Taxpayers should be encouraged by both tax reform proposals and the proposed constitutional taxpayer protections. The income tax is considered the most harmful tax because it punishes growth and productivity. Workers and small business owners will benefit from a tax code that has a low flat rate. […]
“What is clear is that Gov. Reynolds and the Republican legislature are not wasting this historic opportunity, and both have introduced prudent tax reform plans that will benefit all taxpayers.”
CLICK HERE to read the full op-ed. Excerpts are below.
Iowa’s Historic Tax Reform Opportunity
The Gazette
Matt Everson & John Hendrickson
Feb. 11, 2024
In 2022, the CATO Institute’s Fiscal Policy Report Card on America’s Governors ranked Iowa Gov. Kim Reynolds the most fiscally conservative governor in the nation. […]
By 2026, Iowa will replace the progressive income tax with a flat 3.9% rate. However, Reynolds and the Legislature understand that Iowa cannot become complacent. Iowa is in competition for both jobs and people. Reynolds and the Republicans in the Iowa Legislature have introduced two pro-growth income tax reform plans. […]
Over the past several years Iowa’s budget has been in surplus and fiscal year 2023 ended with a $1.83 billion surplus. Iowa’s reserve accounts are filled at their statutory maximums (over $900 million). […]
The governor’s plan calls for an aggressive rate cut this year which would lower the rate from 5.7% to a flat 3.65 percent. Further, Reynolds would lower the rate even further to a flat 3.5% by 2025. This would amount to a $3.8 billion savings for taxpayers over the next five years.
Republicans in the Senate and House have released a joint plan that also accelerates rate reductions until a flat 3.65% rate is achieved by 2027. Further, the House and Senate plan creates a mechanism to eventually eliminate the income tax. […]
Both plans are pro-growth and will provide substantial tax relief for Iowa taxpayers and make the state more competitive.
The Legislature is also considering two important constitutional amendments to protect taxpayers. The first would require a two-thirds or supermajority requirement of both chambers of the Legislature to increase the income tax. The second would constitutionally protect the flat tax so a future legislature could not enact another progressive tax system. Both of these amendments would serve as taxpayer protections and place the taxpayer first. […]
It’s time for critics of the governor and the Legislature to learn a lesson from Minnesota. Minnesota, after a massive increase in spending and increasing taxes, is confronted with a budget crisis. The same is true for California.
Minnesota is practicing the failed tax and spend agenda; Iowa is demonstrating to the nation how responsible fiscal policy works. Conservative budgeting and pro-growth tax reforms lead to economic strength and fiscal stability. Governments cannot tax and spend their way to prosperity.
Taxpayers should be encouraged by both tax reform proposals and the proposed constitutional taxpayer protections. The income tax is considered the most harmful tax because it punishes growth and productivity. Workers and small business owners will benefit from a tax code that has a low flat rate. […]
What is clear is that Gov. Reynolds and the Republican legislature are not wasting this historic opportunity, and both have introduced prudent tax reform plans that will benefit all taxpayers.
