As Gov. Kim Reynolds promotes her tax plan around the state, taxpayer advocates have expressed support for some parts of it, and less for others.
While the “Invest in Iowa” initiative contains provisions for some property and income tax relief, the income tax plan would not extend to C corporations, Tom Sands, president and CEO of the Iowa Taxpayers Association, told The Center Square.
“The governor has legislation to provide income and property tax relief, and we support that concept,” Sands said. “However, many of our members, we are a little disappointed that C corps are listed out.
“They will see some relief from property tax, but they would be affected by the increase in sales and use liability, and they don’t see any income tax cut,” Sands added.
Still, the association hopes for progress on that front.
“That would be our biggest concern, that corporations won’t see any income tax relief,” Sands said. “We have shared that with Governor Reynolds, and she understands that and she is willing to work with us in some way to address that.”
Sands also said the initiative presents an interesting way to find additional money for water quality.
“We would applaud her for thinking outside the box to do that,” Sands said.
According to a story posted on the Quad City Times website, Senate Majority Leader Jack Whitver, R-Ankeny, said there is interest within the GOP caucus to “revamp and accelerate the ‘triggers’ in the 2018 tax reform efforts to make tax cuts faster, and to further slash income and property taxes.”
Sands said his organization would prefer to eliminate the triggers from tax cuts two years ago.
“There may have been better ways to do it,” Sands said.
“I think there is a lot of good stuff in the bill; it attempts to provide extra money for water quality, it provides tax relief for some Iowans and should help economic development,” Sands said, adding, “I just wish our companies and businesses were part of the relief as well.”