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07.29.20
The DHS Council is starting the process of putting together its budget (including the Medicaid budget) for the next two years, and will be hosting a... Read More...
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07.28.20
Senate Republicans continued to hammer out the details of a fourth COVID-19 relief package, which Senate Majority Leader McConnell (R-KY) has... Read More...
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07.01.20
The Des Moines Register featured a great article on the challenges Iowans with disabilities face during the COVID-19 outbreak.  Titled "Iowans with... Read More...
Governor Finishes Signing 2020 Bills into Law
07.01.20
Governor Kim Reynolds finished signing the 113 bills sent to her during this year's legislative session.  She line-item vetoed the budget bill,... Read More...
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06.22.20
The Iowa Legislative Session finsihed its work on June 14; our next issue of infoNET will be published after the Govenror takes action on the 113... Read More...


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ON THE OTHER SIDE: Governor Rolls Out Her Tax Plan

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Last week, Governor Kim Reynolds introduced her tax reform package that includes tax cuts totaling about $1.7 billion between now and 2023.  The bills (SSB 3195 and HSB 671) reduce personal income tax rates, eliminate the ability to deduct federal taxes paid from your state taxes, increase the standard deduction, increase small business exemptions, and start collecting taxes for things bought online.  You can view the Governor’s detailed press release about the proposal here.
 
The House and Senate will start sifting through the plan’s details, and working on their own proposals. Some legislators have said they want to increase the sales tax for water quality, and perhaps use other parts of a one-cent sales tax to offset tax reforms and mental health funding. There is clearly a long way to go before lawmakers reach consensus, and we don’t expect to see much more than high level talks until the revenue estimating conference (REC) projections March 9 are released.  

Bottom line: tax cuts take money away from the state budget, so will need to be paid for in some way.  The Governor does not explain how she will pay for these tax cuts, or what programs will see reductions because there will be less money coming into the state.