Governor Kim Reynolds’ legislative proposal for a flat income tax is being argued as equal, but opponents say it would benefit higher income earners.
Governor Reynolds released in her annual Condition of the State address that all Iowans would pay a 4% income tax rate and no state income tax at all on retirement income. Iowa’s current tax law has high-income earners paying a larger percentage of their income than lower-income earners. District 42 Senator Jeff Reichman (R) tells KCII he supports Reynolds’ plan, “I think a flat tax is the way to go. It gets rid of a lot of the loopholes and exemptions. Of course it’s a percentage, so everybody’s paying the same share. So we didn’t have a lot of the exemptions that they had at the federal level, so I don’t think it’s going to impact any one segment, it’s more equal and I think that’s what we should do is things should be equal across the board, for everyone.”