Today, the Iowa Senate passed the largest income tax cut in Iowa history.
“For years Senate Republicans have promised to provide income tax relief and today, we kept that promise again,” said Senate Majority Leader Jack Whitver, R-Ankeny. “This tax bill is the third major tax relief package the Senate has delivered in the last 4 years. A nearly $1.9 billion tax cut creates an environment for more career opportunities for Iowans, gives Iowans more of an incentive to rejoin the workforce, and helps Iowans weather the impact of record setting inflation created by the reckless policies coming from Washington, DC.”
HF 2317, when fully implemented, moves Iowa’s individual income tax rate from 8th highest rate in the country to the 4th lowest at a flat 3.9% rate. It exempts all pension income from state taxes, provides relief for retired farmers, and reforms corporate income taxes. It also provides for transfers from Taxpayer Relief Fund if revenues do not meet expectations.
“Today is truly a great day to be an Iowan,” said Senator Dan Dawson, R-Council Bluffs, and the chair of the Senate Ways and Means Committee. “We’ve heard the quote ‘Big government bureaucrats believe every day is April 15 and Senate Republicans believe every day is the Fourth of July,’ and today feels like the Fourth of July as we celebrate this accomplishment of transformational tax relief for Iowa families. Cutting down Iowa’s tax rates to a flat tax is a huge step towards getting rid of the income tax in Iowa and will have a major impact on Iowans and their families. I am proud of the work we have done here and how far we have come, and proud to see this bill pass the Iowa Senate today.”