Governor-elect Branstad says in addition to plans to make major cuts in state spending, he wants to cut taxes by over $300-million. “We have already talked with the new speaker of the House and the Republican leadership in the House and they believe that money should be used to reduce taxes,” Branstad says.
Under state budgeting rules, about $327-million could be spent, but Branstad and Republican legislators want to put that money aside to provide more state tax cuts. “That’s one-time money left over at the end of the fiscal year and so we’re saying that we should not be spending that but instead that can go to hopefully reduce the tax burden,” Branstad says. “And I think that’s basically not only where we’re coming from but I think that’s where the new Republicans, anyway, in the legislature are coming from as well.”
Some of that money would be used to ensure already existing property tax credits are covered through state payments to local government. The rest could be used to fulfill Branstad campaign promises to cut the state’s corporate income tax rate in half and to reduce commercial property taxes.
Branstad made his comments today during a briefing for members of the Iowa Broadcasters Association and the Iowa Newspaper Association.