Under the Golden Dome

Guest Column
By: 
Carrie Koelker
Iowa State Senator, 29th Dist.

In the Legislature 

This was the first week of the 2020 legislative session in Des Moines. We have already started on many of the issues we have heard about over the past several months. Being my second session, I’m familiar with the territory and look forward to working with all the elected officials as we gathered back as a General Assembly. The first few days were an adjustment being back in Des Moines but the view every evening when I departed the Capitol for the day was a nice perk. 

Each year we listen to speeches from the Majority Leader, the Senate President and the Minority Leader on the first day. Then throughout the week we hear the Governor’s Condition of the State address, the Condition of the Judiciary, and the Condition of the Iowa National Guard. 

On Tuesday we heard from Gov. Reynolds about her plan and vision for Iowa, specifically regarding tax reform and parts of her budget, like the Invest in Iowa Act. Her speech had a lot of major topics in it, like childcare, expanding the workforce and ensuring Iowa children are receiving the best education they can. All things we have continued to hear as we visited with constituents within our districts. We are looking forward to working with both Gov. Reynolds and the House of Representatives on these important issues and working on a sustainable budget. 

I was impressed with the Governor’s address. I enjoyed her bold vision, energy, and dedication to Iowa. The plan is a great start to make Iowa a place to live, work, and raise a family in Iowa. As we work on her priorities, we have a budget to keep in mind while we build Iowa on a solid platform. 

A big priority is continuing to reduce the tax burden on working Iowans. We will also work on continuing education and expanding the workforce to help fill the thousands of open jobs in our state. 

As the legislative session continues and we start to take up these important issues, I urge you to contact me with comments, questions, and the issues important to you.

Continuing Tax Relief for Iowans 

The Senate set course in 2017 to reduce the tax burden on hard-working Iowans. The reasoning was obvious, according to the Tax Foundation, Iowa’s tax climate ranked 42nd in the nation. We understand those states experiencing the most significant economic growth have the lowest income tax rates in the nation. 

Guided by our pro-growth agenda, we passed a tax bill that provided an average income tax reduction of 10 percent immediately and by 2023 the top tax rate will be reduced to 6.5 percent. Going into the 2020 legislative session, we are committed to keep lowering the tax burden on Iowans. We are hopeful Iowans will receive additional income tax reductions as a result of our work over the next 100 days. 

Gov. Reynolds announced her plan for tax relief this year. Iowa currently has nine tax brackets, with a top rate of 8.53 percent in tax year 2021. Under Gov. Reynolds’ plan, she is proposing to raise the sales tax one percent, work off our earlier tax reduction success to further reduce taxes, and bring our top tax rate down to 5.5 percent by tax year 2023. The change would cut income tax by an additional 10 percent for many Iowans, with the lower-income Iowans receiving up to a 25 percent cut, according the Governor. 

Senate Republicans will be working in the weeks and months ahead to ensure a significant net tax reduction for Iowans.

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