DES MOINES, IOWA — Three separate proposals are here from Republicans on income taxes and all three are a little different.
The plans vary on individual and corporate income tax rates. Iowa House Republicans and Governor Kim Reynolds both agree on a flat 4 percent individual income tax. Senate Republicans want there to be a 3.6% flax tax.
“When all is said and done it will be over a $2 billion tax cut for the people of Iowa, it will save the average family $1600 in taxes,” said State Senator Jack Whitver (R) from Ankeny.
Opposition to the Senate tax bill comes from concerns of other taxes increasing due to the cutting of income taxes.
“They are clearly trying to rush the bill through,” said State Senator Zach Wahls (D) from Coralville. “Our view based on what we have read so far is that this plan will actually raise taxes on hardworking families.”
For corporations Governor Reynolds wants there to be a 5.5% income tax; the Senate Republicans want there to be a 7.8% income tax. While the House bill has nothing about corporation taxes, Speaker of the Iowa House Pat Grassley said that he would be able to work on legislation with that language in there.
“The House is not opposed to having that conversation,” said State Representative Pat Grassley (R) from New Hartford. “I have been very clear and I think that our caucus has been very clear that this is a global conversation when it comes to corporate. It involves credits and exemptions, so if we have that conversation that will need to be a part of it.”
Grassley added that this corporation tax would not slow down the legislative process or extend the length of the session due to disagreements on the specifics. He instead said that it is good that all three bills are available so close to the beginning of the session so there is time to work through all three bills.