With inflation and rising interest rates, it’s normal to worry about the national debt and what that means for our country. But what about Iowa and our local communities?
During the last few years, the state of Iowa tightened its belt and has reduced its overall debt burden. However, the combined total of state and local government debt increased by 5.3% to $18.8 billion in FY2021, the highest percentage increase in a decade.
Intentions Don’t Always Equal Results In an effort to compete in our global economy, each state in the U.S. relies on economic incentives to attract corporations. Depending on one’s view of incentives, this can be thought of as economic development, or corporate welfare, or even crony capitalism. According to one 50-state evaluation, Iowa has 60 programs, the most among its neighbors. Unfortunately, […]
For fifteen years the American Legislative Exchange Council (ALEC) has produced Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index. This broad index measures 15 policy variables that ALEC has deemed important to economic growth, with a particular focus on tax and spending policies.
“One of the great mistakes is to judge policies and programs by their intentions rather than their results” – Milton Freedman
This quote hits home for many of us who care about public policy, and it applies most accurately to using our tax dollars to incentivize companies to do business in Iowa. Depending on one’s view of incentives, this can be thought of as economic development, or corporate welfare, or even crony capitalism. The reality is incentives are a tool used to compete in our global economy and literally every state in the nation has adopted some form of incentive program.
Truth-in-Taxation: A Rock Chalk Taxpayer Protection March Madness wrapped up this month with the Kansas Jayhawks being crowned National Champions. While there may not be many Iowans who joined Jayhawk fans in celebrating that victory, there was another win in Kansas that we can all be happy about: property taxes. The map below identifies 21 Kansas counties that actually experienced a decline in […]
The United States is growing more dependent on foreign nations for necessities, including potentially hostile nations such as China. As we examined last month, 2021 was the 10th straight year America’s trade deficit with the Chinese eclipsed $300 billion. If that pattern is not alarming enough, though, there’s more worrisome activity being undertaken by China: the massive acquisition of American farmland. By the United States Department of Agriculture’s own estimate, investments from China held $2 billion of American agricultural land at the beginning of 2020.
March Madness wrapped up last week with the Kansas Jayhawks being crowned National Champions. While there may not be many Iowans who joined Jayhawk fans in celebrating that victory, there was another win in Kansas that we can all be happy about: property taxes. The map above identifies 21 Kansas counties that actually experienced a decline in property taxes this year.
Before examining what caused the big win in Kansas (the property taxes, not the basketball), we should reflect on the property tax situation in our state. Iowans are demanding property tax relief and nobody can blame them. Even before inflation reached record highs, putting a major squeeze on household budgets, Iowans felt the pain of having a heavier property tax burden than 40 other states.
Most citizens expect the property taxes paid to their city to be used for road maintenance, snow removal, building maintenance, and of course, public safety. These activities are all considered core government services and functions. However, in current times we see some of our city governments spending considerable dollars on things that could be better managed by the private sector – and that’s a problem.
Did Iowa Spark A Tax Reform Movement? This year may be one of the most historic for states lowering income tax rates across the nation. So far, at least six other states have joined Iowa in passing tax cuts, while many more have tax reform legislation under consideration. The graph above illustrates the new rates that will be delivered to individual taxpayers in their […]
This year may be one of the most historic for states lowering income tax rates across the nation. So far, at least six other states have joined Iowa in passing tax cuts, while many more have tax reform legislation under consideration. The graph above illustrates the new rates that will be delivered to individual taxpayers in their respective states. The […]
Let us take a step back from all the numbers, charts, and research on the issue of school choice. If we’re honest, most of us only believe the data that fits with our narrative anyway. Instead, we can discuss a couple of arguments that opponents of school choice trot out and apply some basic common sense to both of them.
School choice, specifically in the form of Educational Savings Accounts, is taking center stage inside the Iowa Capitol as negotiations on key policy items continue with the end of this year’s legislative session in sight. ITR Foundation has detailed the need for school choice in our state from various perspectives.
Americans have less money than they had last year—though taxes haven’t been raised. So what’s the problem? Inflation, which has increased at a 40-year high annual pace of 7.9%. It acts as a hidden tax because we don’t see it listed on our tax bills, but we sure see less money on our bank accounts.
Editor’s note: ITR Foundation is thrilled to welcome Sarah Curry, DBA, to our team where she will serve as our Research Director. You’ll get to know her work soon enough, but first we asked her to introduce herself to our members.
Obvious statement up front: Almost no one likes paying taxes.
But Iowans understand taxes provide for the vital services and infrastructure we all depend on. Property taxes, specifically, are a dependable way to collect revenue and they encourage less evasive behavior than income and sales taxes.
A few recent headlines have passed without much attention. The first story is our national debt has reached $30 trillion, while the second is the trade deficit for 2021 hit a record $859.1 billion. Both stories were virtually ignored because the American people have just become numb to the topics, though they may be missing some wider ramifications, especially when it comes to trade.
Do the media and the left not understand how tax cuts work? Did they collude to protect Hunter Biden? Would you like to see just how much Iowa is improving its tax climate? Who is really to blame for the soaring prices we’re all paying these days? ITR Foundation sets the record straight below. Budget Growth & Tax Cuts: A […]
By Patrick Barron What almost everyone calls “inflation” is really a rise in the general price level. OK. But the real definition of “inflation” is inflation of the money supply. A rise in the general price level is a consequence of inflation of the money supply. Technically, the price level is determined by supply and demand, one of economic science’s […]
Somehow Hunter Biden has managed to make himself the common thread that ties together a war in Eastern Europe with everything people dislike about politics in America, while pointing to this country’s collective and completely justified distrust of the media. We are not suggesting that Hunter’s activities in Ukraine have anything to do with Russia’s invasion. But if American citizens […]
For several years we have praised North Carolina for its historic tax reform. The Tarheel State is the gold standard for prudent state tax policy that pairs conservative budgeting with shrinking tax rates. Governor Kim Reynolds and Iowa’s legislature have followed a similar path to deliver pro-growth tax reform by balancing restrained spending growth with income tax cuts. Years of prudent budgeting enabled the passage of historic tax reform this year, which will create a flat 3.9 percent income tax rate by 2026.
By John Hendrickson This past week we lost a champion of liberty with the passing of Bob Williams. Bob served as a state legislator from Washington and he founded two state policy think tanks, Evergreen Freedom Foundation and the Washington Policy Center. As a lawmaker and as a public policy professional, Bob Williams was a budget hawk and a defender […]
Let’s make something clear right away: Iowa’s state budget is going to continue to grow in the coming years. The only reason that point may be in question is Iowa’s Revenue Estimating Conference (REC), which has the difficult responsibility of estimating revenue for the state, recently released updated projections. The REC increased the current fiscal year (2022) estimate by 4.2 […]
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 […]
Iowans recently scored a huge income tax reform victory but are still frustrated with out-of-control property taxes. Additionally, how should cities, counties, and school districts use the nearly $1.2 billion in federal funds they received from the American Rescue Plan Act (ARPA)? ITR Foundation has solutions to those issues as well as some school choice stories for you to check […]
Opponents of school choice want you to believe that school choice will hurt our public schools and that public money should not be used for private institutions. ITR Foundation Deputy Director Walt Rogers sat down with Need to Know host Jeff Angelo to discuss these myths surrounding school choice and why those objections do not hold water. The discussion starts […]