House Republicans are embracing all but one key element of the tax plan Governor Kim Reynolds proposed earlier this month.

The House GOP plan released today uses the governor’s outline for reducing the state’s personal income tax rate to four percent, exempting retirement income from being taxed and providing a tax break for retired farmers. The plan does not include a cut in the corporate tax rate as Governor Reynolds and Republicans in the Senate have proposed.

House Speaker Pat Grassley has said the House GOP’s goal is to pass a plan that focuses on providing tax relief to individuals and he says their plan does not raise taxes on Iowans.

Democrats say a flat tax will wind up causing some Iowans to pay more and the tax cuts Republicans propose will lead to cuts in state services.