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Gov. Reynolds budget proposal includes 1-cent sales tax hike, income tax cuts

Reynolds delivered her priorities for the 2020 legislative session in front of lawmakers of both parties.

DES MOINES — Iowa Gov. Kim Reynolds’ focused on potential tax cuts, sustainable mental health system funding and a Constitutional amendment to “protect life” during her third Condition of the State Tuesday morning.

Reynolds, a Republican, delivered her priorities for the 2020 legislative session in front of lawmakers of both parties. A new Speaker of the House—Pat Grassley, R-New Hartford,—and House Majority Leader—Matt Windschitl, R-Missouri Valley,—were elected to their new positions on Monday.

“Two years ago, thanks to many of you in this room, we passed the largest income-tax cut in Iowa history,” Reynolds said. “I said then, and I’ve said ever since: that wasn’t a one-and-done. I intend to make good on that promise.”

Reynolds’ budget proposal includes a multi-year plan to further reduce income taxes for Iowans.


The proposal also includes a one-cent sales tax hike, which she’d like to see take effect Jan. 1, 2021.

Iowa Supreme Court Justices Christopher McDonald, left, Susan Christensen, center, and Edward Mansfield, right, share a laugh before Iowa Gov. Kim Reynolds delivers her Condition of the State address before a joint session of the Iowa Legislature, Tuesday, Jan. 14, 2020, at the Statehouse in Des Moines, Iowa. (AP Photo/Matthew Putney)

READ: Gov. Kim Reynolds’ 2020 Condition of the State address

“To jump immediately back into a tax cut, which I’m sure proportionately will go to those at the top who don’t need it isn’t a wise decision I think, and I think many, many Democrats will feel,” Rep. Tony Bisignano, D-Des Moines, said.

The governor also is prioritizing a Constitutional amendment regarding abortion in Iowa.

“We must protect life by making clear, through an amendment, that our constitution does not grant a right to an abortion,” Reynolds said. “It’s time, and unfortunately, it’s necessary.”

Reynolds’ also asked for more funding for Glenwood Resource Center, which has been at the center of controversy over the last several months.