Legislative leaders in Iowa are hesitant to support Governor Kim Reynolds’ proposed tobacco tax increase, but are considering taxing nicotine alternative products like pouches and vapes. The House has passed a temporary premium tax increase on HMOs and private companies managing care for Medicaid patients to address a deficit in the Medicaid program. House Speaker Pat Grassley acknowledges the difficulty of raising taxes but sees it as necessary to address the budget shortfall. Various tax ideas, including a gas tax and gaming taxes, are being considered in the legislature, with hopes to conclude work before April 21. Governor Reynolds has emphasized the need to raise the cigarette tax to combat high lung cancer rates in the state.
