State Rep. Prichard Has Questions About Flat Tax Bill
Iowa Governor Kim Reynolds signed legislation Tuesday that will phase in a flat 3.9% personal income tax by 2026.
House District 52 State Representative Todd Prichard (D) of Charles City says the bill was rushed and likely means reductions in state funds available to local governments.
Prichard adds that the tax cut benefits the wealthiest Iowans more than others.
The new law will eliminate state taxes on retirement income starting next year, and enact new tax breaks for retired farmers and people retiring from employee-owned companies. The corporate tax rate will also be reduced over time, along with reductions in some corporate tax credits.
Republicans say they are delivering on their promise to return tax dollars to Iowans when there is a budget surplus.