“Before session began, House Democrats outlined three criteria that should be met before any new tax cut plan is approved:
- Balance the state budget;
- Be fair and simple for all Iowans; and
- Provide relief for the middle class.
Iowans want to know if the Governor’s new tax plan will fix the state’s budget mess or make it worse. We already know that Governor Reynolds and Republicans have mismanaged the state budget, turned a surplus into a deficit, and put $144 million on the state’s credit card that still hasn’t been paid back.
While we are still reviewing the Governor’s plan, the devil is always in the details with new tax cuts. At first glance, her plan could cost well above $1.7 billion. We’ve seen similar tax cut plans passed in other states like Kansas with disastrous results. Iowa families have already been forced to pay higher property taxes and tuition to pay for hundreds of millions in corporate tax giveaways given out by the GOP the last few years.
Democrats will keep working to restore fiscal discipline and keep the state budget balanced. We can’t afford another tax plan that will make the state’s budget crisis even worse.”