Des Moines, IA- House Republicans have introduced a bill to eliminate the state income tax on retirement income from pensions, IRAs and 401Ks.
Radio Iowa reports that Republican House Speaker Pat Grassley suggests it might prompt some older Iowans to think twice about relocating or living more than half the year in another state that doesn’t tax retirement income.
“I think we’re losing a lot of those people that I would say are the pillars of our communities, They’re the ones that volunteer. They’re the ones that philanthropically are supporting those organizations and foundations in the community,” Grassley says. “We want to keep those people and they want to stay in Iowa, but if it’s beneficial to maybe just move across the border or move to some other states that don’t have these (taxes), I don’t want that to be a barrier to keep those people in our communities.”
Grassley made his comments on “Iowa Press” on Iowa PBS.
This House GOP plan to expand that exemption to all retirement income would go into effort for the 2022 tax year. That’s a year earlier than Republican Governor Kim Reynolds has proposed.
