Senate passes $1 billion tax cut on 39-7 vote

DES MOINES — The Iowa Senate Friday overwhelmingly approved a bill that will cuts Iowans’ income taxes next year.

Senator Dan Dawson, a Republican from Council Bluffs, says, “We are going to accelerate the current ‘flat tax’ that will go into effect in 2026 to 2025 and take that rate lower to 3.8%. That will return about $1 billion back to Iowans quicker.”

Dawson says the state has a structural surplus of over $5 BILLION dollars of unspent tax dollars. “As we entered the session we had a lot of different ideas out there as to how to return those monies back to Iowa taxpayers and what would be the appropriate form on how to we do it that would be responsible, sustainable,” Dawson said, “as well as big.”

The bill passed the Senate on a 39 to seven vote. Senator Janet Peterson, a Democrat from Des Moines who voted against the bill, says a flat tax benefits the wealthiest Iowans.  “While I can’t be with you on this today, I do hope we can have some broader conversations about tax fairness,” Petersen said.

Senator Herman Quirmbach, a Democrat from Ames, says Republicans are shrinking the state’s ability to fund priorities like schools.  “Nobody likes paying taxes,” Quirmbach said. “Nobody wants to pay more than they have to, but taxes — as they say — are the price we pay for civilization.”

Governor Reynolds has indicated she will sign the tax cut into law.