The Iowa Legislature adjourned sine die on May 5, having gone 18 days past its 100-day session deadline to debate a new tax plan, which will significantly reduce tax collections annually and cut $2.1 billion in state tax revenue over the next six years. The session saw
- Republicans hailed the legislature’s goal of developing a new tax plan as a “once-in-a-generation opportunity.” The new plan (SF 2417) will provide significant income tax cuts for individuals and small businesses — as much as $398 million in 2019 alone. Specifically, the plan cuts the number of individual income tax brackets from nine to four, with a top rate of 6.5 percent. It will also lower the highest corporate tax rate from 12
percent to9.8 percent.
- The legislature also passed
the FutureReady Iowa work development program (HF 2458), one of Governor Kim Reynolds’ key priorities for the 2018 legislative session. The program aims to provide 70 percent of Iowa’s workers with some form of post-secondary education or training by the year 2025 through a combination of apprenticeship and mentoring programs, course offerings, and scholarship grants. The bill received unanimous, bipartisan support, and was signed into law on April 3.
- Additionally, the legislature passed bills that increase residents’ access to mental health services, deny state funds to “sanctuary” cities and counties, and allow small businesses to offer healthcare plans that fall short of standards set by the Affordable Care Act.
Election PreviewIowa’s governorship is on the line this year. In yesterday’s Democratic primary,