Governor Kim Reynolds is preparing her list of priority issues for the 2024 Iowa legislature and it includes a tax plan. A year ago, Reynolds said her goal was to completely eliminate the state income tax by early 2027. Reynolds told reporters Monday morning she’s meeting with legislators and business leaders and her staff is analyzing a variety of data points, but the governor isn’t ready to reveal details.
The Iowa Taxpayer Relief Fund currently has a more than $2.7 billion balance of taxes that were paid to the state, but not spent. The state surplus is approaching $2 billion on top of that.
Democrats in the legislature say state tax cuts should be targeted to low- and middle-income Iowans.