Iowa republican Governor Kim Reynolds says she does not plan to dictate which components of HER tax plan must be included in the final version she negotiates with Republicans who control the legislative branch of government.
The plan that cleared a House committee last Thursday did not include the governor’s proposal to end a state tax break for federal taxes. It’s a tax deduction that makes Iowa’s individual income tax rates look higher than they are when compared to other states.
As for the SIZE of the tax cut, House Republicans are aligned with the governor at about 300-million dollars a year, while Senate Republicans are proposing about three-quarters of a billion dollars. Reynolds told reporters the final tally of tax cuts may wind up “somewhere in the middle.”
Reynolds says a”sustainable” plan will leave the state with enough tax revenue to meet on-going commitments to the state’s education system, the Medicaid program and other priorities.
