(Radio Iowa) – Iowa Senate Republicans have released a tax plan to lower the state income tax to three-point-six percent within five years. Governor Reynolds has proposed a four percent rate within four years. A mechanism in the bill could eventually eliminate personal income taxes altogether. Senate G-O-P Leader Jack Whitver.

“Really, we’re in a position where we can’t afford not to do tax cuts. This is important for the everyday Iowan,” Whitver says. “…Their bills are going up and we’re trying to put more money in their pockets.” The Senate GOP bill includes Governor Kim Reynolds’ proposal to eliminate taxes on retirement income and provides a tax break for retired farmers. Whitver of Ankeny says when fully implemented, the plan will reduce state income taxes by two BILLION dollars.

“We think this is really important to keep good on our promise to return an overcollection of tax dollars back to the people of Iowa,” Whitver says. The plan cuts the corporate income tax rate along with changes to reduce tax credits and exemptions for businesses by 140 million dollars. Whitver says it’s an attempt to reform how corporations are taxed.

“We want to have a real conversation in Iowa about what that rate should be and can we lower that rate if we get rid of all those special interest carve outs,” Whitver says. “Your rate shouldn’t depend on how many lobbyists you have here at the Capitol to get you those carve outs and we want to lower it for everybody.”The plan includes a maneuver that reclassifies local option sales taxes as a statewide tax. Whitver says the move would let lawmakers put other state funds in the voter-approved by long empty account voters approved in 2010 to pay for water quality and outdoor recreation projects.

“We’re not going to raise the sales tax. We’re going to work within the parameters that we already have in place,” Whitver says. “We wanted to start that conversation and we’ll see where that conversation goes.” House Republicans plan to release their own tax plan soon and promise it will not raise taxes for any Iowan. The Senate’s Democratic leader says the plan Republicans in the Senate have released will result in higher taxes overall and cuts to state services.