State Senator Jeff Edler, (R-State Center)

This Friday marks the end of week three for the 2022 legislative session. We have continued to have subcommittees on a wide range of policy proposals. As we narrow down the focus of the bills we expect to move through committee and the full Senate chamber, time becomes of the essence.

This week we had the honor to meet with US Sen. Chuck Grassley and US Rep. Ashley Hinson. There was a lot of discussion on the broad overreach of federal government policies or lack of policy to stop aggression around the world. We had discussion on workforce issues and how the Republicans will address these issues in the months going forward. I appreciated their willingness to meet with us.

Also this week we moved a bill forward in subcommittee that goes straight at the root of family and foster child issues. As we see an increasing number of children with emotional and behavioral irregularities we have to start addressing the root cause. One of those causes is the failure to find stability in their lives. SSB 3066 will make necessary changes to help children find stability as they age out of the foster system and need a support bridge to be successfully educated or trained for Iowa’s workforce.

Another bill that went through subcommittee this week was Senate File 2011. This bill requires the Department of Natural Resources to make youth deer hunting licenses available for purchase during the same period that general deer hunting licenses are available for purchase, including through all established deer hunting seasons. This bill will allow young Iowans with the opportunity to get out and enjoy Iowa’s beautiful outdoors and partake in an outdoor activity where they previously found government restriction.

Environmental Change for Iowa’s Tax Code

So often when you hear the word environment you automatically think of the weather or climate change. I would like to expand your horizon – environment is a much broader depiction of the world around you. It is often the adjective that is absent when the word is used to truly describe what facet of the environment is being referenced. Today I want to talk about Iowa’s tax environment.

This week Senate Republicans unveiled their 2022 tax bill. While I am still seeking input and reviewing all of the concepts of the bill, it goes a long way toward improving Iowa’s tax environment.

The tax relief package contains a number of sections, but the highlight of the bill is a major reduction in the income tax Iowans pay. The top income tax rate in Iowa is currently, 8.53 percent and applies for earnings over roughly $78,000. Since the top rate starts so low, many middle-income Iowa families are paying some of the highest tax rates in the country. When this tax bill is fully implemented, Iowa will have a flat 3.6 percent tax rate. This will make our state tax rate the 4th lowest income tax rate in the country instead of the 8th highest.

Iowa also has a corporate tax rate of almost 10 percent. Once again, one of the highest in the country. Due to flawed tax policy, many corporations have had to rely on tax credits in order to have a competitive environment for their businesses. Iowa’s corporate tax environment should not be punitive to business. As we continue to drive down the overall rates we have to make needed reforms to the tax credits.

The bill also fully eliminates all taxes on retirement income, it expands military pay exemption to full-time National Guard members and provides farmers a first-time pension exemption by exempting income from either cash rent or farm crop shares. There are many states, including Illinois, that do not tax pension income. These policies changes seek to keep retired Iowans from fleeing to states without a pension tax.

Feel free to contact me with any questions or concerns.

Sen. Jeff Edler (R-State Center) is serving his second term as a member of the Iowa State Senate. First elected in 2016, Edler serves District 36 which includes Tama County, Marshall County and a portion of Black Hawk County. Edler is currently the Chair of the Senate Human Resources Committee and is a member of the Senate Agriculture Committee, Appropriations Committee and Veterans Affairs Committee. He can be reached by office phone at 515-281-3371 or by email at jeff.edler@legis.iowa.gov.