Reynolds Proposes Cutting Iowa Income Taxes By $2B

(Des Moines, IA)  —  Iowa Governor Kim Reynolds proposes cutting the state’s income taxes by two billion dollars.  Reynolds wants to move toward a four-percent flat income tax that would be phased in over four years.  She also wants all state taxes on retirement income repealed by next year.  Reynolds made the proposal Tuesday night during her annual Condition of the State message to lawmakers.  The flat tax idea would reduce state revenue by more than one-and-a-half billion dollars by the tax year 2026.  The governor would leave two billion dollars in the taxpayer relief fund to cover losses if state revenue growth falls short of the four percent per year needed to offset the cuts.