Iowa’s flat tax ushers in a new era — it’s time to cut unemployment taxes
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The popularity of President Donald Trump is influencing state policy, as legislators and governors across the nation seek to replicate the Make America Great Again agenda. Some of the most prevalent fiscal initiatives include state-level versions of the Department of Government Efficiency (DOGE) and adopting tax proposals, such as “no tax on tips” and “no tax on overtime pay.” Currently, three “no tax on tips” bills and two “no tax on overtime pay” bills have been introduced in the Iowa legislature.
Subheading 30-Second Summary: Iowa’s reliance on federal funds significantly impacts the state’s fiscal flexibility, often imposing restrictions and obligations that limit its ability to implement independent tax and budget policies. To address this challenge, Iowa must adopt two key legislative changes: creating a federal funds inventory and requiring agency guidance disclosure regarding federal funding. A comprehensive inventory of federal funds received by the state […]
Future property tax reform must focus on controlling local government spending. A levy or budget limit is the best path forward. By capping the amount of property tax revenue localities can collect, they will be forced to manage spending more responsibly. At its core, taxation is driven by government spending—and if taxpayers want lower taxes, government at all levels must spend less.
On March 4, voters in 46 Iowa counties will go to the polls. In front of them there will be measures from 25 school boards, five city councils, and three county boards. Iowa law allows local governments to propose public measures for taxpayer approval in special elections, typically held in March and September.
As local governments across Iowa prepare for upcoming special elections, many are once again asking voters to approve tax measures—some of which have been rejected in previous elections. With school districts, cities, and counties revisiting these proposals, taxpayers must stay informed about how these decisions could impact their financial future.
If you go to the Iowa Judicial Branch’s website, you will see photos that accompany the various announcements of what is going on with Iowa’s court systems. One of the photos depicts a statue of Lady Justice-the allegorical personification of the administration of justice. She is depicted blindfolded and holding a balanced set of scales.
The imagery is powerful: Justice is supposed to be delivered without regard to who the parties are and with a presumption of neutrality in the process. The scales start off even and it is up to the parties to convince Lady Justice of the merit of their case—facts and law (and nothing else) persuading her to deliver justice.
Many cities are not content with the revenue provided to them by property taxes, sales taxes, and other revenue sources. As a result, they are seeking more dollars from other sources. A franchise fee in Iowa is a charge that cities can impose on providers of utilities and other municipal services (such as gas, electricity, water, cable, and mass transit) for using public property to deliver them. These fees are passed on to consumers as part of their utility bills.
Incentives may lure developers and data centers, but Iowa’s high property tax situation should be a “fire bell in the night” for local government officials. High property taxes will deter economic growth. They will discourage new residents, entrepreneurship, and force people to leave.
Incentives may lure developers and data centers, but Iowa’s high property tax situation should be a “fire bell in the night” for local government officials. High property taxes will deter economic growth. They will discourage new residents, entrepreneurship, and force people to leave.
If Iowa changes its tax code before Congress decides on federal tax rules, the state risks having unnecessary, redundant, or conflicting policies that could create complications and unintended consequences.
Embedding these protections will safeguard taxpayers from pressures by special interests demanding increased spending. The flat tax promotes economic growth, and the two-thirds requirement ensures fiscal restraint while maintaining Iowa’s competitive edge among states.
Jared Cohen in Life After Power: Seven Presidents and their Search for Purpose Beyond the White House, credits Herbert Hoover with the rise of the modern American conservative movement.[1] Cohen’s argument may be surprising to many because Hoover is traditionally viewed as a progressive. However, this was not always the case and not only was Hoover a conservative in terms […]
The real cause of Iowa’s high property taxes isn’t rising assessments—it’s unchecked local government spending. HF 718 was a start, but stronger reforms are needed to protect taxpayers and ensure sustainable growth.
High inflation, national economic uncertainty, and slowing state revenue might lead some observers to assume state income tax reform will slow down. However, as legislatures reconvene across the nation, several have begun consideration of significant income tax reforms.
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