(Des Moines) The Iowa Legislature is wrapping up its second week in session. One of the items on the docket this session is addressing Governor Reynolds’ Flat Tax Proposal.
Governor Reynolds tells KSOM/KS95 News the state has an entire unemployment trust fund where they can reduce the unemployment insurance payments employers make by half.
This will result in significant savings for employers of all sizes, saving over $800 million over five years.
When looking at the Governor Flat Tax Proposal in 2018, the state’s income-tax rate was the 6th highest in the nation at 8.98%. By passing legislation that further cut rates, the state’s most recent income-tax bill established a flat rate of 3.9%, set to phase in gradually until finally taking effect in two years. She proposed a new bill that reduces the rate to a flat 3.65%, then in 2025 to 3.5%.
Thursday Morning News
