Des Moines, Iowa – Republican lawmakers have yet to decide what lawmakers will do about tax policy in 2021. Republican Governor Kim Reynolds says the state can easily afford to hasten a series of income tax cuts. While the Republicans in the Senate have endorsed this move, the Republicans in the House are more cautious.
Republicans in the House of Representatives want to make an informed decision that can be sustained over the long term, according to spokesman Pat Grassley.
(As above) “We have been in the majority in the House for 10 years now, and I think a lot of that is down to the decisions we made about the budget,” says Grassley, “and the stability we have to have. I’ve brought to the state government. ”
Under current law, the cascade of income tax cuts will only take effect if government tax revenues are expected to rise by at least four percent – and total tax revenues are over eight billion. Grassley refers to these requirements as “triggers”.
(As above) “The reason the triggers were used there was one of the points House wanted to bring up during the negotiations in 2018 … to make sure we can go there to ensure this tax break without jeopardizing the national budget, ”says Grassley.
Tax revenue is expected to grow by three to eight percent. Majority Leader Jack Whitver says Senate Republicans believe this is enough and agree with the governor on income tax cuts. The Senate GOP also wants to lower the county’s property taxes by having the STATE taxes cover the cost of the mental health system.
(As above) “Most states across the country use government funds to pay for mental health,” says Whitver, “and we have had a system that has financed mental health for property taxes for over 20 years.”
Whitver said Senate Republicans won’t have to wait to find out if the federal pandemic aid money being sent to the state of Iowa prevents lawmakers from lowering taxes.
(As above) “We want to cut taxes and I don’t want to wait another year. I mean, I don’t think Iowans want us to wait for someone else, ”says Whitver. “… Nancy Pelosi, Chuck Schumer and Joe Biden are not going to let us know what to do with taxes in the state of Iowa.”
Whitver and Grassley appeared separately on “Iowa Press” on Iowa PBS.