DES MOINES – Iowa Republican legislators passed a tax reform bill that cuts the tax burden on many Iowans, but Democrats called it “a bad deal.”
Gov. Kim Reynolds praised the Iowa House of Representatives and Iowa Senate Saturday following their passage of historic tax reform, Senate File 2417.
“Republicans led on tax reform in 2018,” Gov. Reynolds said. “As a result, hardworking, middle class Iowa families, farmers, small business owners and workers get meaningful relief, all while Iowa’s budget priorities in future years are protected.”
Senate File 2417 modernizes Iowa’s outdated tax code by prioritizing Iowa’s hardworking, middle class families; reducing rates and eliminating federal deductibility, making Iowa’s tax code more competitive and transparent; dramatically simplifying Iowa’s overly complicated tax code; ensuring fairness for Main Street businesses in the modern economy; and protecting budget sustainability in future years.
Meanwhile, Democrats fumed at the bill’s passage.
“Republicans passed a tax giveaway bill today that gives most of the benefits to out-of-state companies and millionaires,” Iowa Democrats said in a statement. “It’s a bad deal for most Iowans. It will raise property taxes on families, seniors and small businesses, and it will result in cuts to health care, job creation, education and other critical services.
“Senate Democrats came into the 2018 session promising to support tax reform that would:
Make the tax system fairer for working families and small businesses
Make Iowa businesses more competitive
Take into account our current budget crisis
Tackle corporate tax giveaways, the fastest growing part of the state budget
“By every measure, the tax plan unveiled in the 11th hour of the 2018 session and passed by the Senate today fails every one of those tests. That’s because the bill is filled with giveaways to millionaires, wealthy corporations and people who don’t even live in Iowa.”
Iowa Democratic Representative Marti Anderson said, “I don’t know how we can do this huge tax cut when we don’t have funds to pay our bills. We’ve de-appropriated state funds four times in the last two years, haven’t fully funded public safety, human services, corrections, or other state departments. And, the private for-profit MCOs are asking for ever more funds to manage Medicaid. We should wait to see the impact of the new Federal tax and the effects of proposed tariffs on our economy. I will be voting no on this bill.”