From the Capitol with Steve Firman - Special Update March 1, 2022
posted on Tuesday, March 1, 2022 in Government Affairs
March 1, 2022 Legislative Special Update
Legislators came to an agreement last Thursday, February 24, on an income tax cut for Iowans. There have been three proposed bills in front of the Legislature since the beginning of the session and final result is HF2317. Both chambers passed the bill and the Governor signed it on Tuesday.
The massive tax cut lowers the individual Iowa income tax rate to a flat 3.9%, makes retirement income tax free and cuts the corporate tax rate. The individual rate goes from being the sixth highest of all the states (8.9%) to the fourth lowest. Grow Cedar Valley is especially pleased that the Legislature and the Governor addressed the corporate income tax rate, which is currently the third highest in the nation, lowering it over time to 5.5%. We declared our support for the bill.
Dustin Miller, Executive Director of the Iowa Chamber Alliance, applauded the passage of the law. Commenting on the Legislature’s activity, Miller said, “The action taken by the Legislature with Governor Reynolds instantly moves Iowa to the front of the class from both a rate and simplification standpoint. Rather than trying to explain away a complex system with high personal and corporate rates to business prospects, Iowa’s tax system can now be a selling point to individuals and businesses looking for a business-friendly environment.”
Please contact us if you have questions or wish to have more information.
Steve is the Director of Government Affairs for Grow Cedar Valley and serves as the CEO of Pharmacy Marketing Group, Inc. (PMG) and President of FPCI, an administrative management and public policy consulting firm,