Groups at budget hearing make case for Iowa income tax cuts, elimination

DES MOINES — Governor Kim Reynolds didn’t share any clues about her tax and spending plans as she hosted an online hearing about the state budget Wednesday afternoon, but groups that have lobbied for tax cuts in the past used the forum to make the case for deeper reductions.

“Clearly there is significant room to continue to lower income tax rates,” Iowans for Tax Relief president Chris Hagenow said. “…Excited to see what you might have planned for us going forward.”

Tyler Raygor, state director for Americans for Prosperity, said it’s reasonable to accelerate the plan to shrink down to a 3.9% flat state income tax.

“Moreover, we would support you, Governor Reynolds, and the legislative leadership in crafting a strategic path toward the complete elimination of the income tax,” Raygor said. “This bold move would make Iowa an attractive destination for businesses and individuals seeking a state committed to fostering economy freedom.”

Mike Rozenboom, legal counsel for the Iowa Bankers Association, said Iowa is in a well-positioned to both cut taxes and spend money on affordable housing, child care, education and other quality of life initiatives.

“Tax relief and a robust budget will mean more money is being invested in communities across the state,” Rozenboom said.

Matt Everson, state director for the National Federation of Independent Business, said his members want to pay less taxes. “To let them keep their own money, to let them spend that in their communities, on their own employees and what not,” Everson said.

Reynolds will deliver the annual “Condition of the State” address on Tuesday at 6 p.m. and release her state budget plan that evening. During the event two years ago, she called on legislators to pass a flat income tax and is likely to reveal her latest tax cutting goals next Tuesday.