(Radio Iowa) Governor Kim Reynolds has said her goal is to get rid of the state income tax by the end of her current term — which would be December of 2026. A bill that cleared an Iowa Senate committee last spring suggested elimination of the state income tax could be accomplished in the next decade. Republican Senator Dan Dawson of Council Bluffs is chairman of the Senate Ways and Means Committee.

“The Senate Republican goal has always been to eliminate the income tax in a responsible and thoughtful manner,” Dawson says. “and that is the pathway that we are going down this next session.” Dawson says he’s looking forward to seeing the tax plan Governor Reynolds is set to unveil in January. Under current law, the state’s personal income tax will become a flat three-point-nine percent by 2026 — but Republican leaders say the state is still taking in far more tax dollars than needed to run the government.

Senate Democratic Leader Pam Jochum says the focus of tax cutting should be on helping working families and elderly Iowans.  “Not on the wealthy and the big corporations who have quite frankly benefited from this series of tax cuts we’ve seen in recent years,” Jochum says.

Jochum and Dawson made their comments at a forum sponsored by the Iowa Taxpayers Association. The 2024 Iowa legislative session begins Monday, January 8th.

(Radio Iowa) – Senate Democratic Leader Pam Jochum says Democrats are developing a plan of targeted income tax cuts, like raising the Earned Income Tax Credit for low and moderate income workers, as an alternative to the G-O-P goal of getting rid of the state’s income tax.

“If there’s going to be any changes in the tax system, number one you don’t eliminate the income tax system because it is a more fair system,” Jochum says, “based on the ability to pay.” Governor Kim Reynolds and Republican lawmakers say their ultimate goal is complete elimination of the state income tax. Reynolds approved income tax rate reductions in 2018 and, in 2022, the governor signed a bill that is making deeper cuts in tax rates for individuals and corporations. It will eventually shrink the individual income tax rate to just under four percent by 2026.

“We have been waiting almost six years as working class or middle class Iowans to see any result of even the tax cuts that happened six years ago,” Jochum says. Jochum points to a Department of Revenue analysis which found that if the state income tax is eliminated, the state sales tax would have to be raised to 14 percent to maintain critical state services.

“The sales tax is a regressive tax,” Jochum says. “Regardless of how much money you earn, you’re going to pay 14% on the dollar for everything you purchase and so it’s going to be the working poor, the middle class who are really going to take it in the shorts on this one if that’s the path they follow.”

Republicans in the Senate say eliminating the state income tax will make Iowa more competitive with states like South Dakota, Florida, Texas and Tennessee that do not have a state income tax. A Des Moines Register Iowa Poll conducted last March found 56 percent of Iowans favor gradually reducing the state income tax rate until it is eliminated.

(Boone, Iowa) – Two pickups collided northwest of Boone, Monday evening, resulting in the death of a man from Boone. The Iowa State Patrol says the crash happened at around 7:05-p.m. at the intersection of Kale Road and 170th Street. The report said a 1996 Ford F-150 pickup driven by 74-year-old Larry Young, of Boone, was southbound on Kale Road, and failed to stop at the intersection with 170th. A 2021 Chevy pickup driven by 62-year-old Kenneth Lendt, of Ogden, was westbound on 170th when Young’s vehicle entered the westbound lanes and the vehicles collided.

Lendt’s vehicle then crashed into a power pole and some trees before entering the southbound ditch and coming to rest between two trees. The Patrol says Larry Young died at the scene. Lendt was transported by Boone County EMS to the Boone County Hospital. Both men were wearing their seat belts.

The crash remains under investigation.

(Manilla, Iowa) – A collision between two semi tractor-trailers Monday afternoon west of Manilla, claimed the life of a Carroll County man. The Iowa State Patrol reports a 2018 Peterbilt semi driven by 65-year-old Douglas L. Hook, of Carroll, was traveling west on Highway 141 and crossing the intersection with Highway 59. A 2015 Freightliner driven by 23-year-old Hayden H. Leonard, of Millville, MN, was traveling north on Highway 59.

Leonard’s semi struck Hook’s semi in the northbound lane of Highway 59. The crash happened at around 4:43-p.m. Following the collision, the Peterbilt came to rest in the northwest ditch. The Freightliner came to rest west of the intersection on V Avenue. The accident caused the intersection to be blocked for several hours.

The Patrol says Douglas Hook died from his injuries after being transported by Manilla Ambulance to the Crawford County Memorial Hospital in Denison.