Personal Taxes

Iowa Governor Goals for Additional Earnings Tax Reductions in 2022 | information

(Des Moines) – Republican Governor Kim Reynolds signed sweeping law that cuts income tax, phased out state inheritance tax, and removed a property tax to fund mental health services. State money is to be used to finance the mental health system.

“Health professionals and patients in need of the Iowa mental health system deserve the sustainability and predictability this funding source will provide,” said the governor during a law signing ceremony at an Ames shelter for youth in need.

Reynolds called the entire plan, which includes tax credits for firefighters and blackboards, a landmark law.

“We are not finished yet. We’ll be back next year and I’ll propose lowering our personal income taxes even further, “Reynolds said, then added,” I thought that would get a round of applause. “

The hall full of lawmakers, lobbyists and proponents of various tax policies laughed and applauded. Reynolds told reporters after the ceremony that she would consider all options to cut income tax but was not ready to release a plan.

“States across the country keep crashing their countries, and if we are to stay competitive we have to look at that,” Reynolds told reporters. “We will make sure that we can do this responsibly and maintain the priorities that are important to Iowans.”

The state’s fiscal year ends on June 30, and current projections suggest the state will have a surplus of around $ 500 million.

“For (for) hard-working taxpayers, if we over-collect, we should make sure we get the money back to them,” Reynolds said.

The governor’s ultimate goal is to completely abolish income tax.

“If you listen to the governors, that’s multiple states and I mean multiple states their goal,” Reynolds said. “… Taxpayers win when governors compete to create an environment that not only helps Iowans and Iowa families keep more of their money, but also creates an environment for businesses to invest and grow, hire Iowans and really want to move forward. “the quality of life that we should enable all Iowers.”

Reynolds said that given the complicated system of income tax credits in Iowa, it won’t be easy to come up with a proposal and figure out how adjusting rates might affect different types of taxpayers.

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