Senator Kinney Shares Issues With Governor Reynolds Proposed Fixed Income Tax Rate | Radio KCII


Senator Kinney Shares Issues With Governor Reynolds Proposed Fixed Income Tax Rate | KCII Radio – The one to rely on

District 39 state Sen. Kevin Kinney (D) has qualms with Republicans’ proposals for a flat income tax that would eliminate Iowa’s progressive income tax structure.

Governor Reynolds and the House are proposing a 4% tax to be spread over four years, while the Senate is proposing 3.6% and establishing a mechanism that could eventually eliminate income taxes altogether. The average family would save more than $1,300 in taxes by the time the cut is fully implemented in 2026, according to the governor’s office. Senator Kinney says this plan would favor those with higher incomes who are currently paying up to 8.53%, “The problem with the way the governor wrote this is that there will be no appropriations. people who currently receive tax credits will pay less tax at 4% and begin to enjoy a much larger tax cut than those who currently pay at a tax rate of 4%. 4% And they won’t have those tax credits to help them meet those tax obligations.

House and Senate Democrats have proposed their own tax plan in response to Republican proposals that would also cut corporate taxes and eliminate taxes on retirement income. Democrats are seeking to increase the amount of the child and dependent tax credit and double the earned income tax credit for low-income Iowans. They plan to present their proposals as amendments to Republican tax plans.


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