An internal memo prepared for Iowa Senate Republicans outlines possible changes to the state's tax code, potentially setting an early framework for policy discussions that will take place during the coming legislative session.

Among the proposals listed in the memo, which was obtained and first reported on by the website Bleeding Heartland, are reductions to individual and corporate tax rates, a reduction in the number of tax brackets and an expansion of the sales tax base.

The memo was prepared by the Iowa Department of Revenue, department spokesman John Fuller confirmed to The Des Moines Register. He said it was drafted at the request of Pam Dugdale, who is a senior analyst working on behalf of the Senate Republican caucus and the Senate Ways and Means Committee.

Dugdale directed questions to Senate Ways and Means Committee Chairman Sen. Randy Feenstra, R-Hull. Feenstra did not return requests for comment, though he and other Republican leaders have said publicly they plan to make tax reform one of their top priorities during the 2018 legislative session.

"This draft is one of many by our members," Senate Majority Leader Bill Dix, R-Shell Rock, said in a statement. "Dozens of ideas are being contemplated and tax proposals remain in the draft stage. As I have consistently stated since last year, pro-growth tax relief is my priority and I will continue to pursue that goal during the 2018 Legislative session."

The 43-page memo also lists a number of other possible changes to the state's tax code, including:

Slowly increase the standard deduction from $2,070 for single taxpayers and married couples filing separately and $5,100 for married couples filing jointly, to $5,000 and $10,000 respectively by tax year 2022;

By 2023, reduce the number of individual tax brackets from nine to four, and reduce the top rate from 8.98 percent to 6.92 percent;

Phase out the inheritance tax over five years;

Eliminate federal deductibility for corporations in tax year 2022, but retain it for individuals (federal deductibility is the ability for Iowa taxpayers to deduct what they pay in federal income taxes from their state tax liability);

Reduce the number of corporate income tax brackets from four to two and reduce the top tax rate from 12 percent to 7 percent;

Eliminate the Alternative Minimum Tax for corporations in tax year 2019;

Eliminate sales tax exemptions for some consumer purchases, including digitally-delivered goods and personal instruction services, and begin charging sales taxes on subscription services;

Expand the definition of "nexus" so more online retailers will be subject to sales taxes;

End the sales tax holiday.

However, the memo's author, who is not named, cautions that the potential for tax changes at the federal level "creates significant uncertainty about future income tax revenues in Iowa."

"It is impossible to come up with a tax reform plan until we see what is signed into law at the federal level," Brenna Smith, a spokeswoman for Gov. Kim Reynolds, wrote in an email. "We continue working on our approach to tax reform while monitoring closely what is passed at the federal level."

Congressional Republicans are seeking to finalize and vote on a massive tax package before Christmas.