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Governor Reynolds holds online session about the State budget

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January 3rd, 2024 by Ric Hanson

(Radio Iowa) – Governor Kim Reynolds didn’t share any clues about her tax and spending plans as she hosted an online hearing about the state budget today (Wednesday). Groups that have lobbied for tax cuts in the past used the forum to make the case for deeper reductions. Chris Hagenow is president of Iowans for Tax Relief.

“Clearly there is significant room to continue to lower income tax rates,” Hagenow says. “…Excited to see what you might have planned for us going forward.” Tyler Raygor, state director for Americans for Prosperity, says it’s reasonable to accelerate the plan to shrink down to a three-point-nine percent flat income tax.

“Moreover, we would support you, Governor Reynolds, and the legislative leadership in crafting a strategic path toward the complete elimination of the income tax,” Raygor said. “This bold move would make Iowa an attractive destination for businesses  and individuals seeking a state committed to fostering economy freedom.” Mike Rozenboom, legal counsel for the Iowa Bankers Association, says Iowa is in a well-positioned to both cut taxes and spend money on affordable housing, child care, education and other quality of life initiatives.

“Tax relief and a robust budget will mean more money is being invested in communities across the state,” Rozenboom says.  Matt Everson, state director for the National Federation of Independent Business, says his members want to pay less taxes. “To let them keep their own money, to let them spend that in their communities, on their own employees and what not,” Everson says.

Reynolds will deliver the annual “Condition of the State” address on Tuesday at 6 p.m. and release her state budget plan that evening. During the event two years ago, she called on legislators to pass a flat income tax and is likely to reveal her latest tax cutting goals next Tuesday.