First week sets focus for legislative session

The 2022 legislative session is off and running and WOW, what a first week it has been! As many of you might recall, last year for the opening of the legislative session, my short 18-day campaign had just begun and being in the Capitol for the opening events was completely replaced with door-knocking and getting my message out. It is crazy how fast the past 11 months have gone and how many things in my world have changed. Wednesday also was the first meeting that I held as chairman of the Senate Labor and Business Relations committee.

On Monday we heard a speech from Senate Majority Leader Jack Whitver. In the past six months, I have attended over 100 meetings with various groups, businesses, Iowa Workforce Development, etc. and two issues dominated those conversations. The workforce shortage in Iowa and lowering taxes. It was great to hear those same two issues as the main issues being addressed all week. In Senate Majority Leader Whitver’s speech, he stated:

“Recently, Iowa was rated as one of the best states for opportunity. We were named the state in the strongest position to withstand the COVID pandemic and we were also named the fastest state to recover from it. After 5 years of a Republican trifecta, Iowa’s success is no longer subjective — it’s objective.”

We know the policies that have been passed over the last several years are good for Iowans and their families. We’ve seen successes from those policies, and want to continue building on those successes. It is no secret Republicans in the legislature are dedicated AGAIN to tax relief this legislative session, and Senate Republicans do not want to waste the opportunity we have for permanent, meaningful tax relief AND to find more workers.

This was even more apparent after watching Gov. Reynolds give her Condition of the State address on Tuesday. The governor talked about tax relief and workforce and many of the ways we can address these issues, like licensing reform, unemployment reform, and cutting tax rates to make Iowa more attractive and competitive with neighboring states.

Gov. Reynolds’ speech was memorable for many reasons, but a few lines stood out:

“But in the small towns, around kitchen tables, in the fields and back-offices, Iowans understand that we in this building don’t fund anything. They do. And right now, they’re paying too much. Last year, the state ended with a $1.2 billion surplus, on top of nearly $1 billion cash reserves. That’s good. We kept spending down. But it also means that, despite the historic 2018 tax cuts, we’re still taking too much from Iowans’ paychecks. That needs to stop. Now.”

Gov. Reynolds and Senate Majority Leader Whitver laid out the agenda for the 2022 session and both speeches were heavy with the need to address our workforce shortage, calling for additional tax relief, and how after years of careful budgeting, the state budget has billions in reserves and surpluses.

With too much taxpayer money in Des Moines, I, along with my Republican senators, will work to make sure you are able to keep more of your hard-earned money. In stark contrast to the explosion of government and trillions in proposed tax increases in Washington, D.C., in Iowa Gov. Reynolds proposed a flat tax of 4 percent, less than half of the current top Iowa income tax rate. The governor’s plan is a recipe for growth, it rewards work and investment, and it makes Iowa more competitive with other states. In the Senate, we will continue to develop our tax cut package and while it will have some differences from the governor’s plan, but I can assure you the themes and goals are aligned.

Data have long shown the states with low or no income tax grow more quickly than states with high, punitive tax rates. Iowa is in a position to significantly improve our rankings relative to other states. Iowa is competing with them not just for jobs and careers, but also for workers to fill those opportunities.

Major, permanent income tax relief also helps address our workforce shortage by improving the tangible incentive to work. If Iowans keep more of what they earn, they will be more likely to accept the job offer, take the promotion, or develop their skills for the many job openings all across the economy.

However of all of the speeches that I heard this week, this line from Gov. Reynolds had the most impact for me. So much so, I restated it in my opening remarks of the Senate Labor and business relations meeting:

“There is dignity in work; it gives us meaning and purpose. So when it’s degraded, when idleness is rewarded with enhanced unemployment and stimulus checks, when work begins to seem optional rather than fundamental, then society begins to decay. I’m worried that we’re reaching that point. Where individuals who stay home are being put ahead of the workers who show up.”

I used her words and challenged the Senate Labor Committee, which I chair, to keep that quote as their focus as we move forward in this session. In addition to making tax cuts to help our labor shortage, I identified three areas to focus on in addressing the Labor shortage in Iowa:

• “Attract” new labor to Iowa.

• “Revive” the existing labor pool in Iowa.

• “Reinvigorate” former labor participants in Iowa.

It is an exciting time to be in the Iowa Senate and deliver on the promises made to Iowans. Taxes have been reduced twice in the last 4 years. Last year a bill passed implementing a $1 billion of tax relief over the next several years, and more income tax relief is coming this year. I look forward to keeping you updated as our work progresses.

As always, it is an honor to represent this great district and our wonderful state!