Gov. Kim Reynolds Highlights Tax Cuts, Sales Tax Hike in Address
Republican Governor Kim Reynolds is proposing raising the state sales tax and cutting income taxes as one of her legislative priorities for 2020.
Reynolds announced the plan today in her condition of the state address
“These investments will not only aid our conservation efforts, they will improve our quality of life and help us retain and recruit a new generation of Iowans.”
Three-eighths of the one-cent sales tax increase would go to a water quality and natural resources trust fund, with most of the rest of the revenue going toward new income tax cuts.
Reynolds also wants the state to take on about 70 percent of the costs of the county-funded mental health system, potentially reducing property taxes.
Legislative leaders from both parties say they need to see more details about the governor’s plan before commenting on it.
The first phase of a new trade agreement between the United States and China is scheduled for a White House signing ceremony tomorrow. The deal may bring some relief to farm country.
For nearly two years, the US and China have been levying tariffs on each other’s products. The result for farmers? China didn’t buy as much of their goods, especially soybeans. The federal government shelled out nearly $11 billion to farmers to lessen the blow.
Iowa State University economist Wendong Zhang says even resuming pre-trade war sales figures would buoy agriculture.
Intellectual property and mandatory technology transfer are among those bigger issues.