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Reynolds champions Invest in Iowa Act

Governor seeks to ready our state for a highly successful future

In her Condition of the State Address in January, Gov. Kim Reynolds called on lawmakers to pass major legislation — the Invest in Iowa Act. The governor has now forwarded details about this proposal to the Legislature and begun a series of town hall meetings across Iowa to build support for this initiative.

“The Invest in Iowa Act is a bold vision for Iowa that lowers the overall tax burden on Iowans, and invests significantly in mental health and water quality.” Reynolds said at a press conference on Feb. 12 “This plan will have immediate results for our economic competitiveness and overall quality of life. This kind of meaningful tax reform and investment will not only boost paychecks, but put Iowa on the map as a beacon of economic opportunity.”

According to the governor, her bill will:

• significantly cut income taxes,

• create a sustainable funding source for our mental health system,

• reduce the burden of property taxpayers, and

• fund the Natural Resources and Outdoor Recreation Trust.

Reynolds already has significant backing for the Invest in Iowa Act. Supporters who have joined with her in praising the initiative include Chris Ingstad, president, Iowans for Tax Relief; Flora Schmidt, executive director, Iowa Behavioral Health Association; mental health advocate Mary Neaubauer; Pat McGonegle, chief executive officer, Iowa Pork Producers Association; Stu Swanson, Iowa Corn Growers Association; Jeff Jorgenson, president-elect of Iowa Soybean Association and many state legislators.

A key part of this proposal is the governor’s call for a 1-cent increase in Iowa’s sales tax. That would be offset by a reduction in income taxes for many Iowans.

The proposed boost in the sales tax concerns us. It should be assessed very carefully by the Legislature. Increases in that tax are felt most severely by low-income individuals and those on fixed incomes. The large number of elderly Iowans who reside in our readership area will find a sales tax increase especially burdensome. Many of them primarily rely upon income from Social Security to survive and would not benefit much — or at all — from a reduction in Iowa’s income tax. For these individuals a sales-tax boost would actually lower their standard of living.

The Messenger agrees with Reynolds that tax reforms are needed to improve the competitiveness of our state’s business climate. We also favor a better system for funding the mental health system and improvements in water quality. Even so, we are not yet convinced that a higher sales tax is the best solution. We commend the governor for choosing to make her case to Iowans directly through local town hall gatherings. We’ll keep an open mind on this issue and urge lawmakers to do the same.

We encourage the governor and lawmakers to aggressively seek — and consider — public input on the proposed sales tax increase.

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