Reynolds Backs $2B Iowa Income Tax Cut, Policy Changes – Omaha, Nebraska

Omaha, Nebraska 2022-01-15 03:00:00 –

Iowa Governor Kim Reynolds said Tuesday night that Iowa will move to a four-year gradual introduction of a 4% flat income tax and will abolish all state taxes on retirement income from next year, with 2 billion. Proposed to reduce taxes near the dollar.

Under this plan, retirees 55 and older can be exempt from income from personal retirement accounts, pensions and pensions, and farmers who can be exempt from income from cash rent on farmland or capital gains from the sale of farmland. included.

Reynolds made a proposal in an annual state condition message to the state legislature that convened the legislature on Monday.

When fully implemented, the Flat Tax proposal will reduce state revenues by an estimated $ 1.58 billion by the 2026 tax year.

“Taxpayers will save nearly $ 500 million in the first year alone, with gradual reductions planned over the next four years to protect priorities such as education and public safety. And by 2026, when the bill is fully implemented, the average Iowa family will pay more than $ 1,300 in taxes, in addition to the $ 1,000 tax cut from the 2018 bill. ” She said.

Retirement tax relief will reduce state revenues by an estimated $ 400 million in 2023. This is the first year she has proposed to be effective.

Reynolds plans to leave $ 2 billion in the state’s taxpayer relief fund if state revenue growth falls below the average annual revenue of 4%. State spending growth is typically around 2% in recent years, and the Reynolds budget team expects the difference between revenue and spending growth to be sufficient to keep up with change.

Reynolds also proposed other important policy changes, including:

• Reduce unemployment allowances from 26 weeks to 16 weeks, making it more difficult for unemployed people to refuse jobs. She also proposes to create a department within Iowa Labor Development that focuses on helping the unemployed find a job.

• Launch a national recruitment campaign for law enforcement and prison officers, including a $ 1,000 retention bonus, and offer a one-time $ 1,000 retention bonus to teachers who promise to stay in the state for an additional year. With funding from the Federal American Rescue Planning Fund.

• Maximum damages that may be required in truck accident proceedings and malpractice proceedings.

• Enact state-wide building codes that apply to commercial buildings, including day care centers.

• Demand that the school district publish class materials online, provide a list of books available in the school library, and allow everyone to challenge the books.

• Require students to pass the citizenship test before graduating from high school.

• Require all petrol retailers with compatible gas pumps and lines to offer the E15 by 2026. Newly installed equipment must comply with E85 for gasoline and B20 for biofuels.

• Middle- and low-income families and students with individualized education plans use 70% of the state-allocated per-student funding (about $ 5,300 per student) to create an education system of choice for children. You can move it.

Reynolds Backs $2B Iowa Income Tax Cut, Policy Changes Source link Reynolds Backs $2B Iowa Income Tax Cut, Policy Changes

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