Iowa governor proposes $400 million in tax cuts
In an attempt to create compromise between the Iowa House and Senate, Governor Kim Reynolds offered a plan on Wednesday, May 5 to cut taxes in the Hawkeye State by $400 million.
How is she doing this?
She has proposed shifting the funding for county mental health from local property taxes to the state’s general fund, accelerating the reduction of tax rates approved in 2018, eliminating the inheritance tax, and stopping a property tax ‘backfill’ for local governments, among many other policy changes.
When asked about her proposal she said the state “has never been in a better position to take tax burdens off the backs of Iowans and invest state revenue to sustain critical and important services.”
When elected officials voiced concern over the plan she responded by saying, “Projections show that even with modest revenue growth, and the implementation of this tax relief compromise, Iowa will still be in a strong fiscal position with our cash reserves full and robust ending balances.”