For over a year, Governor Kim Reynolds has been saying her goal is to eliminate the state income tax by the end of 2026, and when the legislature reconvenes next month, Reynolds has indicated she’ll present a tax plan for their consideration. Iowans for Tax Relief president Chris Hagenow says his group supports lower and flatter taxes for everyone.
Critics say nearly half of state revenue comes from the income tax and Mike Owen of Common Good Iowa says eliminating the state income tax would be a disaster.
Owen says already approved income tax reductions will reduce revenue to the state of Iowa by 20 percent.
Hagenow expects G-O-P lawmakers to set up a system to gradually eliminate the income tax as there’s growth in other tax revenue. He cites things like eliminating some sales tax exemptions or deductions and getting rid of income tax credits.
Hagenow and Owen made their comments during a recent appearance on Iowa Press on Iowa P-B-S. The 2024 Iowa legislature convenes Monday, January 8th and Governor Reynolds delivers her annual address to lawmakers on the 9th of January.
