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Iowa Gov. Kim Reynolds signed a nearly $1 billion tax cut into law Wednesday that will lower the state’s personal income tax to a flat rate of 3.8% in 2025.
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The Iowa Legislature passed a bill Friday that would cut Iowa’s personal income tax to a single rate of 3.8% in 2025, sending it to Gov. Kim Reynolds’ desk for her signature.
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Iowa’s personal income tax would drop to a single rate of 3.8% in 2025 under a deal reached by Republican leaders, who estimate their plan would cut taxes by an additional $1 billion.
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County supervisors would be allowed to eliminate a century-old statewide property tax break for owners of forest and fruit tree reservations under a bill advancing in the Iowa Legislature.
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Iowa Republicans are currently working on a constitutional amendment that would require a flat tax rate and could raise the bar for increasing personal and corporate taxes in the future.
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Iowa House Republicans approved language for a proposed constitutional amendment Tuesday that would prevent future state lawmakers from raising personal and corporate income taxes unless two-thirds of the Legislature agrees.
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The franchise fee would help pay for 20% more law enforcement officers and more community amenities.
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The governor proposed enacting a 3.5% flat income tax in 2025, raising minimum salaries for teachers and overhauling special education services during her seventh Condition of the State Address.
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Top Republicans in the Iowa House and Senate want to speed up existing income tax cuts during the upcoming legislative session, and they may pursue more tax cuts after that.
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Hot air and heat warnings greeted students going back to class today across Iowa. A long-running tax program helps keep one of the state’s largest school districts from sending students home early for the day.