Iowa House Republicans this week released their own tax reform plan, the third tax plan introduced during the first weeks of the 2022 legislative session.

On Thursday, House Republicans introduced House Study Bill 626, which follows the introduction of bills earlier in the week by Senate Republicans and Gov. Kim Reynolds’ proposal earlier in the session. It sets the stage for debate over the plans, which are all similar in seeking to reduce the state’s individual income tax, and the creation of a flat tax.

The House plan matches the governor’s proposal and calls for a four-year phased in reduction until the individual income tax rate reaches a flat rate of 4%. The Senate GOP’s proposal would reduce the tax over five years until it reaches a flat rate of 3.6%.

All the plans seek elimination of taxes on retirement income, but differ on how they would approach reductions in the corporate tax rate.

The House GOP version seeks no changes, while Reynolds’ plan seeks a gradual reduction each year that state revenue exceeds $700 million until the top rate is 5.5%, down from the current top rate of 9.8%. Senate Republicans want a gradual reduction to 7.8% over five years, while eliminating some credits and incentives.

The House version also seeks to divert $829 million from the Taxpayer Trust Fund over six years to cover the cost of the tax reductions, while the Senate version seeks to change the fund to a tax elimination fund that would lead to the eventual elimination of the income tax.

In other action this week, the House Human Resources Subcommittee passed House Study Bill 508, which would require the Department of Human Services to conduct an asset test on all members of a household of an applicant for SNAP benefits. Assets would include all bank accounts, excluding retirement accounts, cash over $2,000, real estate [not including a primary residence], lottery income, and personal property, except for one vehicle.