Iowa Legislature sends governor $2 billion flat tax measure

By DAVID PITT
Associated Press

DES MOINES, Iowa (AP) — The Iowa Legislature has sent a bill to Gov. Kim Reynolds that creates a 3.9% flat tax in four years, eliminates taxes on retirement income and lowers taxes for corporations at an estimated cost of nearly $2 billion when fully implemented in a state with an annual $8 billion budget. Republicans in the House and Senate on Thursday negotiated a compromise agreement and passed it through the Senate and House in a few hours sending it to Reynolds, who had proposed a 4% flat tax. Iowa will join about 10 other states with a flat tax when she signs it.