A new flat income tax rate has passed the Iowa House and Senate and a local lawmaker describes this bill as a step in the right direction. 

House District 20 State Representative Ray Sorensen says the new bill will change Iowa’s income tax system to a flat 3.9 percent for all Iowans. This bill would also reduce the corporate tax rate and cut taxes on retirement income. Sorensen tells Raccoon Valley Radio this flat tax cut would make Iowa one of the lowest taxed states in the country. 

“We’re willing to let Iowans spend their own money, and rather than us taking all of it and saying, ‘We can spend it better than you can.’”

Sorensen says this tax cut is not designed to hurt the middle class or help the wealthy. 

“You know, as much as everybody likes to hate on the rich, many of the rich who are the employers and people who provide the jobs, and we don’t want to chase them out of the state either. Again, we want a workforce. We want employers employing people across our great state.”

Sorensen says that this bill incentivizes people to get back to work and people who retire to stay in Iowa.