State legislature tackles tax reform in two bills

The House of Representatives' tax bill features five levels of tax cuts to be determined yearly based on the amount of revenue the state brings in.

Iowa Republicans in both legislative chambers are pushed forward with sweeping tax reform proposals aligning with goals set by Governor Kim Reynolds earlier this year. Looking to lower rates, simplify the tax code, and phase out federal deductibility, the governor presented a tax reform package on Tuesday, February 13 for state legislators to consider in the current session.

Since then, both the Senate and House of Representatives have introduced their own takes of Reynolds' plan.

The Senate Plan

The Senate made the first move in the tax reform push with Senate File 2383, which was introduced to the Senate's Ways and Means committee on Wednesday, February 21. The study bill was fast tracked through the committee, which passed it on a 9-6 party line vote the day after it was made public, a move that has been heavily criticized by Senate Democrats as it sent the bill to the Senate floor before a full fiscal analysis was available.

Read the full story in the March 8 edition.