DES MOINES – Gov. Kim Reynolds signed a flat tax reform bill into law Tuesday, lowering taxes for some while raising taxes for the lowest-earning amongst us.
The bipartisan bill, which passed in both the House and Senate last week, lowers the individual income tax rate for all Iowans to a flat and fair 3.9% rate by 2026, eliminates income tax on all retirement income starting in 2023, and overhauls Iowa’s corporate tax system.
“When I took office, Iowa had the sixth highest individual income tax rate in the nation at 8.98%. I believed Iowans deserved better,” said Gov. Reynolds. “Since then, I’ve worked with the Legislature across multiple sessions to make transformative changes to our tax code, let Iowans keep more of their hard-earned money, and make our state more competitive. With this bill, Iowa is now the fourth lowest for individual income tax rate in the nation. There’s never been a better time in Iowa for bold, sustainable tax reform. This bill rewards work, takes care of our farmers, and supports our retirees, all while protecting key state priorities. Iowans will reinvest these dollars in our economy, communities will prosper, and families will rest a little easier. Once again, we’re putting our faith in Iowans, and they won’t let us down.”
Beginning in Tax Year 2023, the tax liability for nearly 295,000 Iowa taxpayers will be eliminated under the retirement provision of this new tax law and 98% of Iowa taxpayers with $10,000 or more of taxable income will see a decrease in tax liability by Tax Year 2026.
For farmers, age 55 or older who have farmed at least 10 years and are retired, this bill allows an option to eliminate the tax on cash rent or crop share agreements for all years the income is earned.
The lowest earners will see a tax hike, as indicated in the graphic below:
ANY TAX THAT IS REDUCED INCREASES FREEDOM AND PROSPERITY AT ALL LEVELS !!
Idiot Kovid Kim and her daddy tRump! 2 infested peas in a pod!
So what your saying is that the high earners are the hard workers? More like they’re the Duncan yoyo man showing everybody a fancy trick. Take your average ranch hand. If he’s fat, he’s not a hard worker. Lazy. Sitting around chewing on straw. Hard work you say. Punching a keyboard and getting paid 40K. That’s not hard work. Wow look at him. Makes a 100k. Must be the hardest worker of the lot. The only person working hard around here is Kim Reynolds. She looks happy too. Good for her.
Hee-Haw
The lowest earners are the majority.
It is estimated that this will reduce Iowa’s income by almost $2 billion. We still have to repair our streets, maintain our electrical grid, pay our police and firefighters, our teachers and nurses. What do you think is going to happen? You think your property taxes are high now, wait until this starts to affect local income.
I got high and forgot I was poor.
If poor people want more money, they can work better jobs and make more money.
The closer I get to making it, the more disdain and disgust I have for people who are in debt or live paycheck to paycheck, smoke weed, do not maintain a healthy body, and have no thoughts about the future ahead of what they’re going to do over the weekend.
Finally I am beginning to understand why people like Adolf Hitler existed.
Yikes, Jesus be with you.
If you continue to be a mall cop, you may never make it unless you are stealing merchandise from the stores you are supposed to be guarding.
Are you a millionaire? No? Then you’re going to pay higher taxes, and the millionaires are going to pay even less then they have, which is almost nothing. Why does anybody support these lapdogs?
It says Bi-Partisan. That means both parties you idiot. The tax rate is 2.5% which is basically niothing.
If your gas price went up 2.5%, you’d be howling like a werewolf, even tho you only drive nowhere
And gas prices have gone 70% since Brandon came into office.
People are howling over that.
We are all a little dumber after reading this comment. Thanks for participating.
Hate the truth? prove him wrong
That’s a Total on 2.5%. That is 6% lower than it is now. It must be that Iowa Education that keeps you from understanding basic math.
Bi-partisan. In this case, it means that 2 Democrats voted for it in the House and 2 in the Senate.
Bingo. That’s how Joey sees it
That is how most people see it.