Income tax reform and unemployment insurance reform will bolster the survivability and prosperity of Iowa’s Main Streets
Gov. Kim Reynolds was instrumental in the successful passage of two huge small business priorities that are now law. NFIB is encouraging its members to drop her a Thank You and has made it possible with the push of a button. See below.
HF 2317 – Income Tax Reform
This legislation provides significant tax reductions for many small-business owners and their employees. The bill reduces the current 8.53% top personal income tax rate to a single 3.9% flat rate by 2026. This bill also eliminates taxes on retirement income starting in tax year 2023 and begins to reduce the corporate tax rate from 9.8% to 5.5% as certain revenue triggers are met over time. HF 2317 passed the House 61-34. Then, it passed the Senate 32-16, and was signed into law by the governor on March 1.
HF 2355 – Unemployment Insurance Reform
This legislation reforms Iowa’s current unemployment insurance system and transforms it into a re-employment system. The bill accomplishes many things, including minimizing the maximum amount of time an individual can be on unemployment from 6 months to 4 months. This provision alone will save employers $70-$80 million dollars per year in unemployment taxes. HF 2355 passed the House 58-37, then the State Senate 30-14. Governor Reynolds signed it into law June 16.
Click here to read more about both reforms and to send Governor Reynolds a thank you.