Iowans can expect new tax cuts in the future, according to Gov. Kim Reynolds and Iowa Republicans.
Reynolds and state legislators spoke at the Iowa Capital Press Association’s pre-legislative forum.
“You can look for a bold and historic agenda that includes among other things another round of tax cuts, a comprehensive workforce package and of course continued education reform,” Reynolds said, the Associate Press reported. The state currently has a $2 billion surplus.
In addition to the surplus, the Republican party has control of both state chambers — a 32-18 majority in the Senate and a 60-40 majority in the House. This will enable Republican legislators to draft and pass bills — with or without the support of their Democratic counterparts — for Reynolds to approve.
State Rep. Pat Grassley is calling for what he refers to as a transformational tax relief, which aims to return excess taxpayer funds to Iowans.
“I think that is the one duty we have as a legislature to make sure that we’re spending taxpayers money wisely,” Grassley said, KWWL reported.
Democratic Senate leader Zach Wahls voiced concerns over such plans and their potential effects for the states funding of education, Medicaid, prisons and public safety, AP reported.
Iowa currently ranks 35th highest in income tax rates for the 42 states that collect the tax. Reynolds and Grassley both argue that continued tax cuts are necessary to make Iowa more nationally competitive. The 89th General Assembly will be in session until April 19.
