Iowa lawmakers continue to move away from a tiered progressive state income tax, as the move to a flat tax will now arrive in 2025.
Governor Kim Reynolds signed a nearly billion-dollar tax cut into law Wednesday. The measure lowers the state’s personal income tax to a flat rate of 3.8 percent in 2025.
State Representative J.D. Scholten, a Democrat from Sioux City, on Thursday told Siouxland Public Media News on Thursday that the longstanding income tax system, where higher income Iowans pay a higher percentage of their wages than others, is a much better system.
The top income tax rate for the highest income earners is currently 5.7 percent. Under a previously passed law, the taxing system would have dropped to a flat 3.9 percent for all income levels in 2026.
Reynolds says every Iowan who pays income taxes will see significantly lower tax rates starting next year.
And she says the eyes of the nation have been on Iowa for its several rounds of tax cuts in recent years.
“While they’re paying attention to Iowa, I think it was imperative that because we could, that we go ahead and continue to reduce those tax rates so we can continue to be that narrative across this nation," Reynolds said.
Reynolds also has said wants to eliminate the income tax in the next few years.
In other tax news in a Siouxland state, Nebraska Governor Jim Pillen is not giving up on his quest to reduce property taxes in the state.
Pillen has announced via press release that will hold a series of town hall meetings to continue promoting the tax bill that he had wanted passed in the now-concluded legislative session.
Since lawmakers in the Nebraska Legislature did not pass that, Pillen has said he will call a special session later this summer to continue the debate.
*Additionally, a group of people became U.S. citizens on Thursday in Sioux City, when 21 people from 15 participated in the citizenship oath ceremony.
The event was held at Mary J. Treglia Community House, which was founded in 1921 to provide citizenship and immigration services to the region.
The Oath Ceremony was conducted by officers from the U.S. Citizenship and Immigration Services agency. A Mary Treglia official said it was a proud time for the people and their families as they carried out their quests to become U.S. citizens.
*People from lots of places continue to assist a western Iowa town after a devastating storm.
An EF-3 tornado hit Minden on April 26, damaging at least 180 homes and businesses.
The group Samaritan’s Purse mobilized more than 40 people to help, with a staging area at a church in Oakland, Iowa, 20 miles from Minden.
In the nearby town of Shelby, the local RV Park and Country Inn is gathering goods and donations and even offering a free place to stay for storm victims.
Michelle Coloney is the manager.
“Families can come and get what they need, whether it be food, clothes, baby items. We even have some things for fur babies.” “I've got a church in Missouri, where my in-laws are at. They're collecting stuff and whatever may be needed,” Colony said.
