In 2022, the CATO Institute’s Fiscal Policy Report Card on America’s Governors ranked Iowa Gov. Kim Reynolds the most fiscally conservative governor in the nation. Since 2018, Reynolds and the legislature have placed a priority on conservative budgeting and pro-growth tax reforms. Iowa once had some of the highest income tax rates in the nation. By 2026, Iowa will replace the progressive income tax with a flat 3.9 percent rate. However, Reynolds and the legislature understand that Iowa cannot become complacent. Iowa is in competition for both jobs and people. Reynolds and the Republicans in the Iowa legislature have introduced two pro-growth income tax reform plans.