Iowa will move to a 3.9% flat income tax rate under a compromise between legislative Republicans and Gov. Kim Reynolds that paves the way for passage of the massive tax cut.
Senate lawmakers voted to pass the bill Thursday afternoon, with the House expected to follow, which would send the bill to Reynolds’ desk for her signature. The deal means the governor will have a new achievement to tout in a nationally televised speech Tuesday, when she gives the Republican Party’s rebuttal to President Joe Biden’s State of the Union speech.
House Speaker Pat Grassley, R-New Hartford, said the plan will provide “significant tax relief” and shows Republicans are upholding the promises they made to cut taxes.
“Before session, we said we were going to provide real tax relief for Iowans,” he said. “We have an overcollection of their money, and we’re going to get it back in their hands as quickly as possible.”
