Governor Kim Reynolds is proposing a way to trigger corporate income tax cuts.
The governor did not mention cutting taxes for corporations during her Condition of the State address earlier this week, but her plan is included in a budget report submitted to lawmakers. If Iowa corporations pay more than $700 million in state income taxes this year, Reynolds proposes lowering the top corporate income tax rate next year.
House Minority Leader Jennifer Konfrst, a Democrat from Windsor Heights, said it’s a break for only the most profitable corporations.
“That would not help small businesses across the state,” Konfrst said during an online news conference, “but would, once again, be giving tax breaks to her biggest donors and big corporations in the state instead of focusing on middle income Iowans who need tax cuts the most.”
In December, a key Senate Republican working on tax policy said before lawmakers would lower the corporate income tax rate, corporations would have to sign off on reduced or eliminated tax credits that, in some cases, erase a corporation’s entire state tax bill. And House Speaker Pat Grassley has said House Republicans are focused on personal income tax cuts this year.