A state’s tax code is a tricky thing. No two states have identical laws governing their tax systems, so a direct, apples-to-apples comparison between states is impossible. There are lots of details and the details really matter. For instance, what is the standard deduction allowed by a state? This varies across the country, and becomes a key aspect of the tax plan released by Governor Kim Reynolds last week. But a good starting point for a review of all 50 state tax codes is the top marginal tax rate. Stated simply, the top marginal tax rate is the highest rate any given state levies on the income of its citizens and businesses.
By John Hendrickson, Policy Director for ITR Foundation, and Jonathan Williams, Executive Vice President for policy and Chief Economist at the American Legislative Exchange Council. Governor Kim Reynolds and free-market legislators are working to make Iowa a pro-growth leader. Tax reform is a priority for 2022 – and rightly so. Even after successful tax reforms in recent years, more […]
In Iowa, we expect to receive quality public services at a reasonable cost.
However, in too many school districts, cities, and counties there is a gap between the amount of property taxes extracted from citizens and the growth of the community. For example, one Iowa school district is collecting 90 percent more in property taxes than it did 10 years ago while the number of students has remained the same.
What is going on? Why is this happening? It happens for different reasons in each locality across the state, but the heart of the problem is a failure to talk with local elected officials.
So, if you are upset about your property taxes, select your community below to take a look at the growth gap between property taxes and enrollment/population. Use our built-in email form to easily start a conversation with the people who determine your property tax bill.
Iowans for Tax Relief Foundation has been a consistent voice against the unnecessary and often harmful stimulus money that has flowed to state and local governments across the country and certainly here in Iowa. This isn’t a new topic (check out our related articles below); even prior to the pandemic we warned against the dangers of a growing federal deficit and […]
A Des Moines Register headline from September 2020 posed a question that is already being answered in the affirmative: As working from home becomes routine, will others follow? It’s not just large corporations in Iowa’s biggest city that have shifted where their employees work, but employers of all sizes in every corner of the state have developed flexible and remote work options. Just three years ago, 13 percent of Americans were working from home. At the height of the coronavirus pandemic in 2020, that number had grown to nearly one third of Americans. It is natural to assume that out of necessity or opportunity, a similar trend has occurred among entrepreneurs.
In Iowa, Medicaid is not only one of the most significant drivers of the budget but also one of the fastest growing. Medicaid is a shared expense between states and the federal government, but recent policies on the national level, especially the Patient Protection and Affordable Care Act, have led to an expansion in recipients.
Iowa employers currently have numerous jobs available illustrating that a major problem confronting businesses is the need for workers. The COVID-19 pandemic has impacted Iowa’s labor force and as the economy works through that impact, it will be important to encourage people to move back into the workforce. An area of reform that should be considered is Iowa’s unemployment guidelines.
The ability for Iowans, as well as those who relocate to Iowa, to earn a living will be greatly improved due to 2020’s historic occupational licensing reforms passed by the legislature and signed into law by Governor Kim Reynolds. Those reforms allow for universal recognition of out-of-state licenses, waive licensing fees for low-income individuals, and establish a standard for a fairer review process if a license is denied based on past criminal convictions. Reforming occupational licensing expands liberty and makes Iowa a more competitive state.
“Regulations influence behavior. When we want less of something, we regulate it. For the sake of our families, young people, and low-income workers, we must not regulate jobs out of existence,” stated Rea Hederman, Executive Director of the Economic Research Center and Vice President of Policy at Ohio’s Buckeye Institute for Public Policy. Reducing the regulatory burden on an economy will also spur economic growth, as President Trump demonstrated when his administration combined tax cuts with eliminating unnecessary regulation. That type of free market reform would be particularly powerful in Iowa, since we are home to some of the highest levels of state regulation in the Midwest and across the country.
Governor Kim Reynolds, in her Condition of the State address this week, delivered a Reagan-esque take on the finer points of governing. “Under these ceilings, next to this marble, among these columns and portraits, it’s tempting to believe that nothing good happens unless we legislate it, regulate it, or fund it. But in the small towns, around kitchen tables, in […]
Income taxes aren’t the only piece of Iowa’s tax climate that impedes economic growth; our heavy property tax burden is harmful, too. Iowans are increasingly frustrated about their property taxes, likely because their local governments send them a bill that continues to grow each and every year. Thankfully, a solution exists that will benefit all property taxpayers in Iowa. Utah’s direct notification Truth-in-Taxation law has brought real property tax relief to Utah, and more states are starting to pass this pro-taxpayer reform.
“Today’s legislation ushers in a new era of growth and opportunity in Iowa,” said Governor Kim Reynolds when signing the 2021 tax reform bill into law. “But we are not done yet. Next year, I’ll be proposing additional income tax cuts as we continue to make Iowa the most attractive place in America to open a business, raise a family, and start a career,” stated Governor Reynolds. Iowa was one of 15 states that passed tax reform bills in 2021, continuing the work to improve Iowa’s tax climate that began in 2018. As Governor Reynolds has said, however, that work will need to continue.
Some of our country’s fastest growing states have spent the past decade crafting policies that lower taxes, reduce the regulatory burden, and rely on the choices of their citizens instead of government mandates and control. The free-market solutions presented in this report are a blueprint for growth and a reliable roadmap for Iowa’s future. Click to download the report
By John Hendrickson, Policy Director for ITR Foundation, and Dave Trabert, Chief Executive Officer of the Kansas Policy Institute Iowans are growing more frustrated with high property taxes. A majority of Iowans, 63.4 percent, believe that property taxes are too high. The concern over property taxes surpasses the rural-urban divide and political party identification. Taxpayers are often left wondering […]
Do you want to play a role in the policy decisions that affect your community? Do you want to learn how you can have a say in shaping your state’s future? ITR Foundation has teamed up with Iowans for Tax Relief and Americans for Prosperity to host a free workshop on how to impact your lawmakers. These organizations bring years […]
Join ITR Foundation Deputy Director Walt Rogers, School Choice Expert Corey DeAngelis, and House Education Committee Vice-Chair Representative Skyler Wheeler for an online School Choice 101 event. Watch this live Facebook event Monday, January 10 at 7:30 pm on The Iowa Standard page.
Senator Dan Dawson, chair of the Iowa Senate Ways & Means Committee, speaking before the Iowa Taxpayers Association (ITA) stated that his tax policy goal for the 2022 legislature is to create a “21st century model” that will create the best tax climate in the nation. “We have the opportunity to do a tax reform moonshot here in Iowa,” stated […]