Late last Friday, Iowa Governor Kim Reynolds along with House and Senate Leadership reached agreement on a tax reform proposal. Highlights of this agreement include:
- Individual tax brackets will be reduced from nine to four over five years with the top rate lowered to 6.5% (currently 8.98%)
- The Corporate rate will be lowered from 12% to 9.8%, again over five years
- Phases out federal deductibility
- Automatically couples the state system with most federal tax laws
- Includes “triggers” to ensure budget sustainability in future years
As a member of the Iowa Chamber Alliance (ICA), the Quad Cities Chamber worked in partnership with the ICA to advocate consistently and aggressively for a reform package that made Iowa’s tax more simplistic by eliminating federal deductibility, included reform on the corporate side, and ensured budget sustainability moving forward. Having secured all three of those key principals, it is clear our advocacy work paid off.