Iowa House Republicans made proposals recently to cut state taxes.

House District Representative Ray Sorensen says the Iowa House Republicans have made three proposals on taxes where all Iowans would pay a flat tax rate of 4 percent, exempting retirement income and retired farmers would get tax breaks. Sorensen says their tax proposals differs from Governor Kim Reynolds tax bill.

“Our plan does not include a tax cut for corporations, and that’s where our plan differs from the governor. But you know, our bill also includes an outline on how to use the Taxpayer Relief Fund to offset the tax cut and keep the budget balanced.”

According to the proposed bill if passed the bill would be immediately implemented which also differs from the Governors bill that would begin in 2023. Sorensen explains they are trying to make Iowa a place where its more appealing to retire because surrounding states don’t have state income taxes.