A public hearing is scheduled for 5 pm on Monday the 14th to discuss the Tax Bill- HF 2317. Check www.legis.iowa.gov for the link to watch.
This week House Ways and Means approved House Study Bill 626 (now HF 2317) on a party line vote. The bill is very similar to the Governor’s tax proposal (HSB 551) except the House version does not include corporate tax cuts and instead focuses on individuals. Additionally, the House bill provides that the Taxpayer Trust Fund will be used to offset any temporary revenue reduction in order protect key priorities like education, health care and public safety.
In addition to increasing the number of tax credits, they proposed six different types of tax credits, House Democrats also proposed that the Earned Income Tax Credit be doubled. That is a refundable tax credit based off of the federal credit for taxpayers making $53,000 or less. Iowa’s credit is currently set at 15 percent of the federal tax credit with the state’s contingent liability in FY 23 projected at $72.3 million. The last increase the legislature approved saw the EITC go from 14 percent to the current 15 percent. If the credit were increased to 30 percent, as the House Democrats propose, the contingent liability would grow to nearly $145.0 million in FY 23.
House Democrats have stated they are skeptical that that House Republican tax cut plan helps every day Iowans. However this idea limits any benefit to Iowans making $53,000 or less leaving our hardworking Iowans making more than that. The plan proposed by House Republicans and Governor Reynolds provides meaningful tax relief for every day Iowans who deserve to keep more of their hard-earned money.
Governor & House Republican 4 % Flat Income Tax for All Iowans
