Governor Kim Reynolds introduced a new income tax plan during her State of the Condition last week.

District 20 State Representative Ray Sorenson says Reynolds is proposing a four percent flat income tax rate, which would be phased in the next four years and fully implemented by 2026. Sorenson explains that Iowa’s economy is in a position where they see a priority to help taxpayers. Sorensen adds they still would need to look at ways to make up for some funding shortfall from the flat income tax proposal. 

“These are just ideas out there about anything that is 100 percent against.  The committee still have to do the work, but there’s been talk of raising the sales tax to make up for that and that’s probably the biggest one that I’ve heard.”

Sorenson emphasizes that this is a bold move by the Governor and more information will be presented once it goes through the committees. According to the Governor’s Office the four percent flat tax is projected to save Iowa taxpayers more than $1.5 billion by tax year 2026.