Common Good Iowa’s Mike Owen questioned the timing, however, as the state and nation are still affected by a COVID-19 pandemic and additional uncertainty surrounding federal bailout funding for states where the money is not going to be used for tax breaks may.
“In short, what is the rush?” he said. “We know it will cost us $ 330 million to $ 350 million in federal COVID relief, and the triggers have a good chance of being hit anyway, especially with the federal Iowa booming economy.”
“These triggers provide a certain amount of accountability that lawmakers only required to pass this income tax package, and they should be honored on that basis alone,” he added. “Why are we so determined to turn away an additional $ 350 million in federal aid to potentially bring the new income tax law into effect early?”
Previously, Senate Republicans who held a majority in the 32-18 year olds sent two separate tax bills to the House of Representatives that included removing income tax triggers for 2018, but majority House Republicans have neither of the two measures at this point in session seized.
The Senate’s latest package proposes increasing tax credits under the Workforce Housing Tax Credit Program and closing the backlog on housing projects awaiting support in major cities.