Governor Reynolds Announces Historic Tax Relief Plan

IOWA  --  Lawmakers were supposed to end the legislative session last week but have extended the session to complete state tax cuts and finish the state budget.

At least one of the two is nearly complete. Governor Reynolds announced an agreement on a nearly $400 million tax cut package on Friday evening. The package reduces the number of income tax brackets from nine to four and cuts the top rate from nearly 9% to 6.5%.

According to the governor's office, once fully implemented in 2023, a single tax payer with no children making $25,000 will see a more than 22% cut. A married couple with two children making $75,000 will see a 25% cut.

The tax cut package still needs House and Senate approval.

Republicans likely shouldn't expect many yes votes from Democrats. Coralville Representative Dave Jacoby said, "the new GOP tax giveaway plan is great news for the wealthy and special interests, but bad news for everyday Iowans. With hundreds of millions in new giveaways, the plan will not balance the state budget and means more budget cuts in the future."