In Friday's legislative wrap up meeting the new tax reform bill was a hot topic.
Chris McGowan with the Siouxland Chamber of Commerce says we will see a simplification of taxes in the state of Iowa.
He says he believes lawmakers are trying to make Iowa more competitive in recruiting business.
He says that is positive for the entire Siouxland area.
The bill passed during this year's legislative session.
"The big thing there with tax reform is for the small businesses which really employ the majority of people in this community. Thinks like coupling 179 with for depreciation, those things. I know we're in the weeds but, that's real cash flow for real business people that have those 10,12 to 50 employees so it's going to hit right away and be very significant," says Sen. Rick Bertrand.
Democrat Tim Kacena says tax reform was needed in Iowa but says the bill was a bit short sided.
"Most of the triggers kick in after three years of tax cuts, already. So, we are going to see a significant drop in the amount of money that goes into the general fund, right, about a billion dollars or so over those four periods. and if the revenue comes in as they predict, it should be ok," says Rep. Tim Kacena, (D) Sioux City
Siouxland Chamber of Commerce President Chris McGowan says he believes the legislature is trying to make Iowa more competitive.
"All three states compete with one another in an economic development environment. South Dakota has always received very high marks for its very strong tax policy and tax structure. It's very favorable to businesses and individuals. Nebraska has had a strong, not quite as strong as South Dakota's and Iowa was playing a bit of catch up," says Chris McGowan, President of Siouxland Chamber of Commerce.
Rep. Kacena says the tax cuts have not yet been paid for.
He says they could be paid for with growth.
Republicans say the triggers in place allow for a safety net by allowing tax cuts to be wherever revenue levels are.