After Congress tucked a little-known provision into their $1.9 trillion “COVID relief” bill that would ban states, like Iowa, from cutting state taxes, U.S. Senator Joni Ernst is backing legislation to reverse the provision.
“The Democrats’ partisan, nearly $2 trillion ‘COVID relief’ package rewards states that have mismanaged their budgets while punishing those who have acted responsibly during this pandemic. It’s no surprise that this rushed bill also prevents states—like Iowa—from cutting taxes for its hardworking taxpayers. We shouldn’t punish states, and our working families, for prioritizing fiscal responsibility, and this commonsense legislation will repeal this ill-conceived provision that infringes on states’ rights,” said Senator Ernst.
Area State Legislators are not happy with the action either. State Senator Dennis Guth made it abundantly clear in the Legislative Forum in Lake Mills that the state is not going to tolerate the action.
Guth echoed the position of the state in that it is a state’s right to raise and lower taxes and is not subject to federal mandate.
Ernst is cosponsoring the State Fiscal Flexibility Act, which would eliminate this provision, giving power back to the states to determine what fiscal policies will best serve their citizens.