DES MOINES, Iowa — Constituents weighed in on House Republicans' tax proposal after Minority Leader Jennifer Konfrst, D-Windsor Heights, told reporters last week she and other democrats felt the bill was moving too fast.
"This is a $1.2 billion tax bill that we're just rushing through the process over here," Konfrst said. "We think Iowans deserve a say, we think Iowans deserve a chance to be heard."
The House GOP plan would gradually phase in a 4% income tax rate for Iowans over four years and eliminate taxes on retirement income. Some Iowans believe this is the spark the state needs to attract new residents and keep current ones here.
"The states that have been more competitive in their tax environment continue to grow, and those that are uncompetitive in their tax environment continue to fall flat and shrink," said Drew Klein, the state director for Americans for Prosperity. "When you put money back in the pockets of everyday Iowans they invest in their futures. Our future as a state is intrinsically tied to the investments that they make."
Others shared concerns the savings will not be as impactful as House leaders believe.
"Among middle income retired Iowans, the average tax cut from the retirement exclusion would be $610," said Common Goods Iowa Director Anne Dischler. "No one is going to decide to stay in Iowa or to leave Iowa over $610."
Opponents also said tax breaks will disproportionately benefit wealthy Iowans.
"When will the rich have enough," said Pete Hird with Iowa Federation of Labor AFL-CIO. "This bill contains glitter some may see as improvement. But beware the flat tax benefits the wealthiest of taxpayers by far the most."
Those in favor said it's overdue and the shakeup the economy needs.
"The provisions on employee stock ownership, we believe that is going to really increase the amount of companies we have in Iowa that are actually going to have employees in ownership positions," said JD Davis with Iowa Association of Business and Industry.
After the meeting, lawmakers said this measure could be discussed on the House floor as early as this week. Local 5 News will keep a close eye on the legislation and bring you the full debate from lawmakers.
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