While Iowa lawmakers come out of their first funnel week, one local lawmaker discusses some of the ideas for tax reform. 

State Senator for District 10 Jake Chapman says one important piece of potential tax reform is the idea of eliminating pension tax or retirement tax. Chapman says with the way it currently is people are potentially leaving Iowa for other places when they retire due to taxes on their retirement income.

“So, people that have invested here in Iowa who have 401k’s or who otherwise have pensions often find that when they retire they are leaving Iowa either for South Dakota or perhaps somewhere warmer like Florida that has no income tax and so those investments, their retirement income, is tax free.”

Chapman tells Raccoon Valley Radio the goal for lawmakers is to keep Iowans here after they retire and not have them looking to move to protect their assets and income due to it being taxed here in Iowa. 

“We want to make sure Iowans who have raised families here, who have invested here in Iowa that that’s not a consideration as they look towards where they want to end up in their retirement.”

Chapman says he is confident tax reform will get taken care of during this year’s legislative session.