Governor Reynolds proposes new tax plan

Local businesses would see federal, state deductions

WEST DES MOINES -Iowa's governor wants to completely overhaul your taxes. It's designed to gradually save you more money over the next five years. 

Susan Clark opened her sweet shop late in 2017.

"We always have to get new products in to get people into the store, but there was a huge startup cost, and we spent just about everything we had to do it," said Clark.

So, could tax reform help her?

"Currently, it's positive," said Clark. "I think what they're trying to do is a good thing."

Under the governor's proposal, businesses like hers would get a state deduction on top of the new federal one. 

"Any time that we can save a dime here or there, or even more, it's a good thing," said Clark.

Mike Collins has been a certified accountant for several decades. He told us all businesses would stand to benefit.

"People who pay more tax are going to benefit the most because that's how the tax rates work," said Collins."The more they cut, that's how you're going to get more tax benefit."

On the surface, Collins says those lower rates could reach far for families and businesses in Iowa.
The second largest tax bracket covers more than $100,000 in income, even at the new top level, the rate would be lower.

"I would think that most of Iowans fall into the top third of the brackets as far as taxable incomes go," he said. "So, that's where the greatest effect would be on Iowans."

Those savings would be sweet for those like Susan.

"It gets expensive to do this, so any time we could get a break to do this, that'd be a wonderful thing," said Clark.

Democrats are currently not receptive to the governor's proposal. They issued a statement on Tuesday saying the statement would end up costing the state substantially in other areas to make up for the tax cuts. 
 


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