Iowa Gov. Reynolds proposes ‘flat and fair’ tax in state address
DAVENPORT, Iowa (KWQC) - Iowa Governor Kim Reynolds proposed a flat tax that she said will keep the state on track in 2022 and beyond.
The Republican governor touched on many ideas on Tuesday night, from introducing education reform to renewable energy. However, The number one item on her list for 2022 was introducing a “flat and fair” income tax of 4% for Iowans.
Reynolds said this will keep people in and attract more people to live in Iowa, all while boosting local economies.
“Yes, we’ll have less to spend once a year at the Capitol, but we’ll see it spent every single day on Main Streets, in grocery stores, and at restaurants across Iowa,” Reynolds said. “We’ll put our faith in Iowans, and they won’t let us down.”
This legislation also proposed a tax cut for retired Iowans. She called for a 0% tax for retirement income.
The governor also announced changes that she said will solve the state’s labor issues.
She presented plans for reducing unemployment benefits from six months to four months and also announced a new re-employment division in the state.
“Unemployment benefits serve an important purpose as a short-term safety net for Iowans who are unexpectedly out of work, through no fault of their own,” Reynolds said. “We can’t forget these are taxpayer funds, and we have to recognize that we’re living in a time of prolonged low unemployment.”
The governor also planned to provide direct relief to teachers and police departments by implementing $1,000 retention bonuses for workers who have stayed through the pandemic. As well as expanded tuition benefits for nurses in the state.
In his rebuttal to Reynolds’ address, the Iowa Democratic Party Chair, Ross Wilburn, said the governor’s plans won’t help workers in the state.
Wilburn said the state’s labor crisis “Lays directly at the feet” of the governor.
“We owe it to the Iowans who demanded that our state fulfill its promise even against great odds,” Wilburn said. “To Alexander Clark who integrated his daughter’s school barely two years after the Civil War ... To the men and women of the UAW who went on strike for fair treatment from John Deere.”
He also said the state has work to do if it wants to attract more people.
“We can solve the Reynolds Workforce Crisis by supporting and protecting workers and making Iowa a welcoming place where everyone can thrive,” Wilburn said.
Both the “Condition of the State” address and the Democrat’s rebuttal can be viewed below.
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