Radio Iowa: Speaker says House GOP’s tax plan is simple, sustainable
House Republicans have released a tax plan that uses the governor’s outline for lowering the state income tax to a single rate of four percent and making retirement income tax exempt.
“I’ve been clear that we want to have something that’s simple that’s part of our tax plan, that’s sustainable as part of our tax plan and something that works without having to raise any taxes. I think we have that bill,” House Speaker Pat Grassley told reporters during a news conference on the House floor.
“The governor’s bill that she proposed — lowering the rates to four percent, addressing the retirement — is a great place for us to get a bill that can move through the process very quickly,” Grassley said.
The House GOP plan does not include a cut in the corporate tax rate as Governor Reynolds and Republicans in the Senate have proposed. Grassley says changing state tax policy toward corporations, including a review of tax breaks, “may” be a separate conversation — later.
“I think our focus has to maintain on addressing the governor’s priority that she laid out for the legislature, which I would say is the retirement (income) and the 4% tax,” Grassley said.
The state’s Taxpayer Relief Fund has more than a billion dollars today and is expected to top $2 billion by this summer, as state tax collections soar past expectations. The governor’s tax plan keeps all that money in reserve. The House GOP plan withdraws half of it to support their tax cuts and leaves the other half in the account.
“Just to show that this has a level of sustainability and to show Iowans that we’re not just going to take that money and pull it off the table. We want to get it back in their hands and get it back into the economy,” Grassley said. “We’re thinking long term on this.”