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Iowa’s governor shelves ‘Invest in Iowa’ tax plan

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January 7th, 2021 by Ric Hanson

(Radio Iowa) – Governor Kim Reynolds says due to the pandemic, she will not ask legislators to pass the tax reform plan she unveiled last February.

The plan called for cutting individual income taxes by 10 percent while raising the sales tax one percent. The new sales tax revenue would have been used on water quality and the mental health system. Reynolds says her goal with the plan was to set the stage for a decade of growth and transformation in Iowa.

Reynolds says Iowa’s economy has been resilient during the pandemic and, unlike other states, Iowa policymakers aren’t contemplating tax increases to deal with state budget deficits.