Branstad says he won’t recommend tax cuts to Iowa’s budget

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Terry Branstad

DES MOINES, Iowa (AP) — Gov. Terry Branstad says he doesn’t plan to recommend tax cuts this session, dealing a potential blow to a key priority for the new Republican-majority Legislature.

Branstad says he generally supports tax cuts, but he told reporters Wednesday, Jan. 4, at the annual Associated Press legislative seminar that immediate tax cuts or other reforms are not sustainable amid the state’s financial climate. The current $7.3 billion state budget has a shortfall of about $100 million.

Projections for the next budget year don’t include a surplus.

Republicans have been vocal about changing Iowa’s tax rules when the Iowa Legislature convenes Monday. They haven’t released details but have expressed interest in reducing taxes.

The Republican governor notes the current shortfall will require immediate cuts in state spending, and agencies may lay off employees.

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