Iowa Governor Kim Reynolds says legislators should get rid of a state income tax deduction that makes Iowa’s personal income tax rates look higher than they actually are. Reynolds used her “Condition of the State” speech to lawmakers to call for ending the state deduction for federal taxes.

She’s asking legislators to table any changes in CORPORATE taxes and tax CREDITS, however, until a bipartisan panel reviews how businesses react to recent federal tax changes.

Republicans in the legislature are anxious to pass tax reform sooner rather than later.
Democrats are wary the state budget might fall into bigger deficits if Republicans and Governor Reynolds push through big tax cuts.