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'The Watchdog'

Comparing the Three Tax Reform Plans

posted on April 13, 2018

Tell Your Legislator Which One You Like

 Tax reform was the dominant topic at the Capitol this week. A public hearing for Governor Reynolds’ plan was held Monday evening. Late Wednesday afternoon, the Iowa House unveiled their proposal. Thursday afternoon, the Iowa Senate introduced a revised reform plan. Based information released publicly, here is how they compare:
 
 Governor's PlanHouse GOP's PlanSenate GOP's New Plan
Top Individual Income Tax Rate Reduction8.98% to 6.9%8.98% to 8.89%8.98% to 6.3%
Federal DeductibilityEliminatesKeepsEliminates
Top Corporate Income Tax Rate Remains at 12%Remains at 12%Reduced from 12% to 7%
Tax Relief Over Five Years$1.7 billion$1.3 billion$2.5 billion
Retirement Income ExemptionRemains
at $10,000
Remains
at $10,000
Increases from $10,000 to $20,000
Standard Deduction Increase$2,070 to $4,000 single
$5,090 to $8,000 married
$2,070 to $3,000 single
$5,090 to $7,500 married
$2,070 to $12,000 single
$5,090 to $24,000 married
Tax Credit Adjustments NoNoYes
Modernizes Sales TaxYesYesYes
Qualified Business Income Deduction25%25%100%
Section 179 Expensing Increased Limits$100,0002019 - $100,000
2020 - $250,000
$500,000

Plan Details Released by Governor Reynolds
Plan Details Released by Iowa House Republicans
Revised Plan Details Released by Iowa Senate Republicans

The goal of tax reform is to protect the pocketbooks of hard-working Iowa families and businesses, not to protect spending increases for state government.
Legislators need to hear from you! 

Tell Legislators to Deliver Tax Relief NOW!

Before any tax reform reaches the Governor’s desk, the House and Senate will have to reach agreement on a compromise plan. Even though this legislative session was scheduled to end Tuesday, April 17, it appears it will take a few more weeks to wrap everything up. Keep an eye on your inbox for new Tax Action Alerts.