ICYMI: Is This Taxpayer Heaven?
"Regardless of how well Gov. Kim Reynolds (R., Iowa) delivers the GOP response to President Biden’s State of the Union address, she can already take credit for a big Tuesday win. Iowa does not have one of the most competitive tax regimes among U.S. states, but it sure is moving in the right direction.
“Gov. Kim Reynolds has signed into law a major realignment of Iowa’s tax system,” reports Stephen Gruber-Miller of the Des Moines Register today.
Over the next few years, the law will lower Iowa’s top income tax rate until all Iowans pay a 3.9% flat tax starting in 2026. Along the way, it will eliminate the state’s progressive income tax system, where wealthier Iowans pay higher rates than lower-income Iowans, and place Iowa among 10 other states with some form of flat income tax...
It’s the third major tax cut Reynolds, a Republican, has signed into law as governor, following previous reductions in 2018 and 2021...
The law also makes retirement income like 401(k)s, IRAs and pensions tax free and cuts the state’s corporate tax rate while reducing the size of some corporate tax credits... The law will drop the corporate tax rate to a 5.5% flat rate over time assuming the state takes in at least $700 million in tax revenue from corporations.
Regular readers know that Gov. Reynolds has been a champion for children and their opportunity to learn during the Covid era. She’s also been standing up for the taxpayers of the present, not just future ones."
Read the full story here.