ITR Foundation’s new poll, conducted by Cygnal, shows Governor Kim Reynolds is growing more popular, while President Joe Biden remains unpopular. Iowans support a wide range of conservative candidates and policy measures, including spending limits on local governments to control property taxes.
ITR Foundation President Chris Ingstad said, “It’s telling that after inboxes and television screens have been inundated with campaign messages this fall, Iowa voters have moved in an even more conservative direction. Clearly the conservative principles of limited government and lower taxes, among others, resonate with Iowans.”
Click here to view and download the full poll results.
A flat tax revolution is sweeping the states and Iowa has led the way. This year alone, four states joined Iowa in enacting legislation to move toward a flat income tax rate (Mississippi, Georgia, Arizona, and Idaho).
Iowa’s tax reform, which the state government enacted this spring, is the most extensive of all recent state-based tax reform measures.
Governor Kim Reynolds and the legislature passed a comprehensive tax reform measure that will phase out the current progressive nine-bracket income tax system and replace it with a flat 3.9 percent rate by 2026. Under the law, the flat rate phases in as follows:
It will also gradually reduce from a top corporate tax rate of 9.8 percent to a flat 5.5 percent.
Governor Reynolds and the legislature have made Iowa a national tax leader with the promise of a stronger economy but they cannot become complacent as other states look to a flat tax to foster a stronger, more attractive economic climate for both businesses and individuals.
Regulations are a necessary part of society, but too much regulation can hinder economic growth and prosperity. While lowering tax rates and limiting spending seem to be at the top of most conservative politicians’ pro-growth economic policy list, regulation reform is often forgotten.
Governor Kim Reynolds and the Iowa legislature have done a great job of spurring Iowa’s economy through simplifying the tax code, reducing tax rates, and implementing other pro-growth tax policies. However, there is more to be done.
There are a multitude of options for Governor Reynolds and the Iowa legislature to prune Iowa’s large regulatory burden. Individuals and businesses could further be freed, making Iowa a more attractive place to live, work and start a business.
Iowa has far exceeded expectations again, as the books are now officially closed on fiscal year 2022. Just over six months ago, the Revenue Estimating Conference (REC), forecasted state revenues would be 4.3% more than the previous fiscal year. However, the state ultimately brought in 11.5% ($998.2 million) more than last year, contributing to a budget surplus of $1.91 billion!
This is the second year in a row Iowa experienced a billion dollar surplus, as the state ended fiscal year 2021 with a $1.24 billion surplus. While income tax cuts have been phasing in since 2018, these figures provide even more confidence for the coming rounds of rate cuts and the exemption of retirement income scheduled for 2023.
Find out where the bulk of 2022’s revenue growth came from and how Iowa’s conservative fiscal policies and responsible budgeting cement a secure financial position for many years to come.
Governor Reynolds continues to prove that conservative budgeting is paying off in Iowa. She is a champion for Iowa taxpayers and a defender of traditional values. Iowa’s financial position is due to prudent budgeting and fiscally conservative policies.
“Time and again over the last five years, we’ve ignored the self-appointed experts who insisted that tax cuts and economic prosperity wouldn’t be worth the cost,” said Gov. Reynolds. Further, Governor Reynolds noted that the “budget numbers show, they were worth every penny. It turns out that growth-oriented policies and fiscal restraint are a powerful combination.”’
“Iowans want common-sense responsible policies even when it requires going against the grain. We cut taxes when many said our budget couldn’t handle it; we kept our economy open when few others were; we chose growth over government even when it was hard. As a result, our fiscal health is strong, and our tax code is more competitive than ever,” stated Gov. Reynolds.
In 2019, Iowa lawmakers passed a property tax accountability and transparency law. Any city or county government with a proposed budget increase of more than 2% (school districts are exempt) above the previous year must now hold a public hearing first. Then, if the elected body still wishes to raise taxes after holding that hearing, it must achieve a supermajority vote of its members.
While this law is a good start, huge property tax increases in recent years prove that more needs to be done. ITR Foundation is both monitoring legislators’ plans to “give teeth” to the 2019 reforms and investigating other states with similar laws on the books.
Nebraska, for instance, just implemented a tax accountability and transparency policy, so we traveled to Omaha for the first related public hearing where more than 100 people were in attendance. Learn what happened and how this type of policy could benefit Iowans by allowing citizens to voice their opinion and hold elected officials accountable.
Want to learn more about property taxes in your community? Visit ITRLocal.org.