This week began after a nice weekend celebrating the Easter holiday with our families. This did not slow us down as we got back to work by moving Governor Reynolds’s appointees out of committee on Tuesday. These appointees included the directors of many departments and leaders of various boards and commissions. The appointments will now go to the Senate floor to debate their approval.
The Senate also moved forward Senate File 324, which dedicates funds and invests in important initiatives, like the More Options for Maternal Support (MOMS) program. The bill would allocate $2 million to the MOMS program to help pregnant women looking for help and resources, and allows Iowa’s Health and Human Services department to award fatherhood engagement grants to nonprofits and community-based organizations that address the needs of fathers, whether it is employment, financial obligations, or parenting skills. The bill also establishes a state-funded fellowship program for family medicine and obstetric practitioners in rural and underserved areas. Additionally, it increases funding for families seeking adoptions and expanded scholarship opportunities for Iowa foster kids. SF 324 contains several proposals from the governor and focuses on improving health care access in Iowa and help support expecting mothers and fathers.
Ronald Reagan once said, “Republicans believe every day is the Fourth of July, but the Democrats believe every day is April 15.” While I will always enjoy celebrating Independence Day more than April 15, Republicans have been passing historic tax relief legislation year after year to ensure Tax Day is less and less of a burden to hard-working Iowans and also ensure more money would be kept in the pockets of the people who earned it.
In 2018, Iowa passed its first historic tax relief plan, prioritizing Iowa’s middle-class families, taking the first steps in simplifying Iowa’s tax code, and bringing down our state’s income tax rate. Property tax relief was a focus in 2019 when the legislature passed legislation increasing transparency in the property tax process and made local governments more accountable to taxpayers. In 2021 Iowa passed tax relief for small businesses, eliminated the inheritance tax, and eliminated a property tax levy to help provide property tax relief for Iowa property taxpayers.
Finally, last year the legislature passed our most recent historic tax relief package, flattening Iowa’s income tax to 3.9 percent for all Iowans and eliminating the tax on pensions and retirement income. Before this legislation was signed into law, Iowa had one of the highest income tax rates in the country. Once the flat tax is fully implemented, Iowa will have the fourth lowest income tax rate in the United States. This legislation started going into effect this year. As of January 1, retirement income was exempt from the income tax. The top income bracket was also lowered this year. It is now at 6 percent. Income tax rates will be lowered each year for the next few years until we reach a 3.9 percent flat rate.
Tax relief and Iowans keeping more of what they earn is continual focus for Senate Republicans. We are proud of the accomplishments on reducing taxes over the years and the positive effects for Iowa families.