Hello District 75 from the State Capitol!
Week 7 of the 2022 session was a great week for all Iowans! On Monday, February 21st, the House passed H.F. 2416, which states only female students based on their sex at birth may participate in female sports. Ainsley Erzen of Carlisle, Iowa, is the 2021 high school national champion in the 800-meter run. In the 2021 high school state track meet, 85 males would have beaten her female national record! This bill is common sense and protects females and they deserve a level playing field. We passed dozens of bills this last week, and most were unanimous or close to it.
On Thursday, the Iowa House passed H.F. 2317, the income tax rate that will work its way down to a flat tax rate of 3.9% in 2026. This historic new law will be a huge benefit for all Iowans! The state income tax rates have been taking too much money from the hard working people, and at the 2022 individual income tax rates, Iowa would rank fourth lowest among states with income taxes, according to Iowans for Tax Relief (https://taxrelief.org/). According to an Iowa CPA firm that ran an analysis found here: https://taxrelief.org/false-statements/, a single parent earning $15/hour or $31,200/year would save about $751 in taxes and a family of four at the median household income of $60,000 would save $939. That’s money in their possession which is better than going to the state treasury!
Retired farmers will also benefit by exempting retirement income from taxes. We want to keep retired farmers here in Iowa instead of moving to another state that has no income tax! State corporate taxes will also be more competitive with surrounding states. Iowa currently has one of the highest corporate tax rates in the U.S. at 9.8%. When corporate tax revenue exceeds $700 million, the corporate rate will be reduced the following year and if revenues continue to exceed $700 million, the rates will continue to be reduced till it reaches 5.5%.
There were several constituents visit the State Capitol, including Grace Petrzelka from Vinton for Research Day in the Capitol, Farm Bureau members from Benton & Iowa Counties and Colman Silgernagel of Vinton, candidate for our new Iowa Senate District 42.
Hope you get a chance to enjoy the nice weather coming up this week, and I’ve seen daffodils sprouting already! Please be safe and healthy out there!