Governor Kim Reynolds says due to the pandemic, she will not ask legislators to pass the tax reform plan she unveiled last February.
“At this point, I’m going to pause the ‘Invest in Iowa’ initiative,” Reynolds said this morning during a forum sponsored by the Iowa Capitol Press Association. “I won’t be proposing that again this year, but we’ll always continue to work with the legislature and we are always looking for ways to help hard-working Iowans keep more of their hard-earned money.”
The plan called for cutting individual income taxes by 10% while raising the sales tax by 1%. The new sales tax revenue would have been used on water quality and the mental health system. Reynolds said her goal with the plan was to set the stage for a decade of growth and transformation in Iowa.
“But we’re not through Covid yet and we’re still not 100% sure of the impact it will have on our economy moving forward,” Reynolds said.
Reynolds said Iowa’s economy has been resilient during the pandemic but there’s too much uncertainty about when the pandemic will reach its end point.