Week 4 of the 2022 Legislative Session has been incredibly busy and productive on numerous fronts. In this edition of Freedom Watch, I will discuss the House Tax Plan, and the breaking news that Governor Reynolds is ending the COVID disaster declaration.
The House Tax Plan:
House Republicans have solidified their position on what will likely be the most comprehensive overhaul of the of the Iowa tax code in history. It will deliver huge tax cuts to the citizens of Iowa, while also ensuring that we are able to meet our priorities. This tax overhaul will not only limit the growth of government, but it will also return money to our hardworking citizens at a time when Washington’s out of control spending, and policies that assault the work ethic, have resulted in inflation levels and worker shortages not seen in decades.
- Iowa House Republicans want a tax plan that is simple, responsible and cuts taxes for all Iowans.
- The Iowa House Republican tax plan closely resembles the Governor’s tax cut plan.
- The Plan:
- Lowers taxes for all Iowans so everyone pays a flat tax rate of 4%.
- Makes retirement income exempt for all Iowans and creates a new income exemption option for retired farmers.
- The House plan does not include a tax cut for corporations, keeping the focus on individual Iowans who need relief most right now. However, we understand the importance of making Iowa more competitive and will work for compromise with the Governor and the Senate.
- The House plan includes an outline on how to use the Taxpayer Relief Fund to offset the tax cut and keep the budget balanced.
- The House plan will not raise taxes for any Iowan. It is a massive tax cut that is sustainable, providing tax relief while also ensuring Iowa’s priorities are met.
Making Retirement Income Tax Free:
The House tax plan makes all retirement income in Iowa tax free. This piece is in the House Republican tax plan, the Senate Republican tax plan and the Governor’s tax plan.
How retirement income is taxed in each state can have a big impact on where folks choose to retire, and what state they choose to make their primary place of residence. We see many Iowans retire, move, and change their primary residence to states like Florida, Texas or even Illinois that do not tax retirement income. If we can keep those Iowans here once they retire, that means they continue to contribute to the economy here in Iowa, to non-profit organizations, and to their local community. They can also continue to be our good neighbors.
House Republicans will work with the Governor and the Senate to find compromise between the various plans and deliver to Iowans revolutionary tax relief and reform.
Governor Reynolds Ending COVID Disaster Declaration:
Governor Reynolds has announced that she will end the COVID state of emergency on February 15th at 11:59pm, ending disaster declarations that began on March 17th, 2020. In announcing the end of the emergency, Governor Reynolds stated, “We cannot continue to suspend duly enacted laws and treat COVID-19 as a public health emergency indefinitely. After two years, it’s no longer feasible or necessary. The flu and other infectious illnesses are part of our every day lives, and coronavirus can be managed similarly.” I could not agree more. Thank you, Governor Reynolds.
