The decisions of whether to pass tax reform or how to cut rates were already made in 2018 when the Iowa House and Senate voted "yes." The only question that remains is: when will those cuts become a reality for Iowans? The answer is NOW.
In 2018, the legislature promised to cut income tax rates if state revenue grew to a certain amount and at a fixed rate. These were called "triggers."
Triggers were included because Iowa's financial future was uncertain. The good news is the future is here, and Iowa has pressed on through the challenges of 2020. Our economy is taking off and the future is bright.
Last week's REC projection for FY 2022 is nearly $8.4 billion! This is more than the total amount needed to meet one trigger and just 0.2 percent below the rate of growth required for the other.
Let's be honest, the decisions of whether to pass tax reform or how to cut rates were already made in 2018 when the Iowa House and Senate voted "yes." The only question that remains is: when will those cuts become a reality for Iowans? The answer is NOW.
Iowa can responsibly have these new, lower rates take effect.
In her Condition of the State Address, Governor Reynolds called the triggers “unnecessary” and since then, our economic and revenue outlook has only continued to improve.
Last fall's election confirmed Iowans want to see the passage of more conservative policy. As we've shared with you before, the Senate has done its job by unanimously passing SF 576 this month. SF 576 has the double benefit of eliminating the triggers and phasing out the inheritance tax.
ITR encourages the Iowa House to pick up that bill and send it to the Governor's desk for a signature.
Now is the time to deliver the tax cuts that so many legislators have campaigned on in recent elections. Unfortunately, the House has taken no action on SF 576 yet.
