Iowa Governor Kim Reynolds seems to be leaving the door open to a bill that would cut the state income tax on corporations as well as reduce income taxes for individuals.
In January, Reynolds used part of her “Condition of the State” message to ask legislators to delay any decision on corporate tax cuts until next year. In mid-February, Reynolds unveiled a bill to gradually cut individual income tax rates by 23 percent. Last week, a House subcommittee endorsed the governor’s plan, while Senate Republicans voted to reduce corporate taxes as well as income taxes for individuals. Reynolds was asked by reporters if she was open to the Senate G-O-P’s more expansive list of tax cuts.
A three-member state panel meets this Friday to re-evaluate the official projection of state tax revenue for the current year. If the panel INCREASES it prediction of tax collections between now and June 30th, that would reduce or eliminate the legislature’s plan to cut the current year’s state budget to deal with LOWER than expect tax revenue.
