Iowa House Republicans Pass Historic Tax Cut, Rep. Hein Leads Deal Through House
Today, Iowa House Republicans passed the largest tax cut in Iowa history, after striking a deal with the Governor and Iowa Senate.
House File 2317 reduces the individual income tax for all Iowans to a flat tax of 3.9%. Additionally, the bill exempts retirement income from income taxes and includes a new income exemption for retired farmers.
The bill also makes the corporate tax rate more competitive by lowering the rate over time to 5.5% if the state revenue from corporations exceeds $700,000. The bill additionally reduces refundability on the state’s most expensive Refundable Corporate Tax Credits.
Representative Lee Hein (R-Monticello) led the bill through the Iowa House. Hein stated the following in his remarks on the floor.
"Because of the decisions made in this chamber and the leadership from the Governor, our economy is strong. So strong that we have a historic opportunity in front of us. With a billion-dollar surplus, another billion in the Taxpayer Relief Fund, and our rainy day fund and cash reserves full - we can deliver the largest tax cut in Iowa history while continuing to fund Iowans’ priorities.
We said from the start of session that we were going to deliver tax relief for Iowans in the face of this record-high inflation. We said the tax plan would cut taxes for ALL Iowans. We said that if we were to lower the corporate rate, we were also going to reform corporate tax credits. We said that we were going to eliminate taxes on retirement income so that more folks can continue to call Iowa home after they retire. Well folks, promises made. Promises kept."