The Dickey Dispatch

by Senator Adrian Dickey

The wrestlers left town last week and the basketballers don’t arrive until next week, which means this week the Capitol was a bit slower, except for NFIB (National Federation of Independent Business), ITR (Iowans for Tax Relief), Farm Bureau, and the Iowa Cattlemen’s groups that stopped in. I was fortunate that my good neighbor, Zoe (Atwood) Moritz, stopped by on behalf of the Iowa Cattlemen’s Association and discussed some of their concerns for this year.

The Iowa Small Business Tax Day Lunch was hosted on Tuesday by the National Federation of Independent Business (NFIB) Iowa and Iowans for Tax Relief (ITR). Governor Reynolds and Congresswoman Ashley Hinson were guests at the luncheon and spoke about the value of small businesses and the need for bold, conservative tax reform. My colleague, Senator Dan Dawson, also spoke. He detailed the road ahead for tax relief and the goal of eliminating the income tax in Iowa. Tax relief is important for Iowans and small businesses. It helps to encourage individuals to return to the workforce and it returns much of your money back to you.

All session, workforce and tax issues have been my main priorities and that focus continued this week. Our historic tax bill, HF 2317, is a major step in recruiting non-working Iowans to return to the workforce. I am proud to say this week the Senate has passed historic tax relief that will have a generational impact for Iowans and their families.

This bill implements a 3.9 percent flat tax for all Iowans. On average, Iowa taxpayers would receive $1,326 in tax relief, or about a 36 percent reduction in their tax liability. A flat tax of 3.9 percent moves Iowa from having one of the highest income tax rates in the country to having the fourth lowest. Additionally, it provides tax relief for retired Iowa farmers by providing a first-time pension exemption and eliminates all taxes on retirement income. These policies are incredibly important as we try to make Iowa more competitive so people not only want to stay here, but others will want to come and make Iowa their home.

In 2018, the Senate passed tax relief for Iowans and their families, implementing the biggest income tax cut in Iowa’s history to that time. This bill is the next step in our plan to keep reducing the income tax. It is a vision for a future that makes Iowa more competitive and provides real, permanent tax relief for Iowa families. This bill delivers on the promise that Iowans will keep more of what they earned. It also makes Iowa more competitive with other states, in a fiercely competitive market for jobs and people. It takes a huge step to simplify Iowa’s complicated tax code.

While Iowans are trying to manage their family budgets amid inflation and increasing costs on everything from groceries to the gas pump, Iowa Republicans are going to ensure families keep more of the money they worked hard to earn, help small businesses put more money towards hiring new workers, and take another step towards making Iowa the best state in the country.

This week the Senate also passed Senate File 2268 to address the accessibility and availability of child care. It eases the regulations on child care centers and allows them more flexibility on how many children they can accept per adult. The rules are different depending on the ages of the children being watched. Improving child care access is a key factor in addressing our workforce shortage, so voting on this bill was an easy yes for me.

We also debated SF 2266 this week. This bill was also drafted to help attract more people into the workforce. The bill raises the earning limitation for IPERS retirees that are under the age of 65. Teachers, substitutes, bus drivers, and other Iowans who have not yet reached retirement age can come back to work, earning up to $50,000 annually, without it affecting their IPERS retirement funds. Senate File 2266 is just one of many ways that Senate Republicans are delivering results to address the workforce shortage and bring Iowans back to work.

We also learned this week Governor Reynolds will be delivering the official Republican response to President Biden’s State of the Union address on March 1. This honor is given to a strong Republican leader whose actions and policies embody true conservative leadership. Governor Reynolds’s strong leadership throughout the pandemic has provided a stark contrast to the failed policies of the Biden administration. Her common-sense policies and conservative ideals have helped keep Iowa open, successful, and thriving. I encourage you all to watch Governor Reynolds on March 1 as she delivers her speech. I am, and I know you are as well, very proud that she is representing Iowa on the national stage.