In Des Moines, PILOTs (payment in lieu of taxes) on non-profits are being considered to address high property taxes. Should government focus more on additional revenue or fight for less spending? The city of Des Moines is trying to address high property taxes and PILOTs are being considered as a solution. PILOTs or payment in lieu of taxes, are payments […]
Reducing the property burden is a priority for most Iowans. Cities and counties across Iowa are in the process of planning their budgets and holding public hearings. Government spending is at the heart of high property tax rates, and these budget hearings will not just establish what the city or county intends to spend, but also determine your future property […]
Iowa begrudgingly endures some of the nation’s highest personal and corporate income taxes. Those high taxes hamper economic growth and make our state less affordable for families and less competitive for businesses. Even after recent improvements, tax reform remains a high priority for the Hawkeye State. So we applaud Governor Reynolds for proposing the Invest in Iowa Act and […]
Iowa, along with several other states, is considering occupational licensing reform. Reducing occupational licensing barriers will provide new opportunities for workers, attract new people to Iowa, and create a more competitive business environment. One aspect of occupational licensing reform is establishing reciprocity, or a universal licensing recognition, for out-of-state licensees. The Iowa legislature is currently considering reciprocity as part of […]
The sales tax is getting a lot of attention as a result of Governor Kim Reynolds Invest in Iowa Act. One phase of this Act calls for a one cent sales tax increase. Three-eighths of it would be for the purpose of funding the voter approved Natural Resources and Outdoor Recreation Trust Fund. In addition, the remaining five-eighths of the […]
Reforming a state tax code in order to provide relief, economic growth, and create a more competitive economic climate is difficult. A major reason for this difficulty is tax rate reduction is in direct conflict with numerous policy interests that demand new or additional spending. Rather than reducing rates and reforming the tax code, it is often easier to approach […]
The Des Moines metro is growing and evidence of this growth can be seen through numerous construction and building projects. Recently, MercyOne hospital in West Des Moines announced a $13 million project to create a new maternity and infants care center. This is in response to the demands of a growing population. MercyOne is filling a need by meeting the […]
As a result of the federal Tax Cuts and Jobs Act and elimination of numerous job killing regulations, the national economy is growing and states have benefited tremendously from this growth. In 2018 the legislature passed the first major comprehensive tax reform legislation in a decade. Governor Kim Reynolds, in her Condition of the State Address, called for further tax […]
Iowa has the highest corporate income tax rate in the country at 12 percent. That rate, combined with the federal corporate tax, totals 29.5 percent. As part of the 2018 comprehensive tax reform law, the legislature lowered the rate. In 2021, the top corporate tax rate will still have four brackets, but the top rate will fall from 12 percent […]
In 1934, Iowa enacted the first sales and income taxes to provide property tax relief. Today, nearly a century later, Iowa taxpayers still face the challenge of not only high property taxes, but also income and sales taxes. Between 2000 and 2017, Iowa property taxes increased by more than 100 percent. This increase is more than inflation and population […]
With the federal government eliminating job-killing regulations and the implementation of The Tax Cuts and Jobs Act, it has led to national economic growth. Many states are using this as an opportunity to lower income tax rates. In 2018, Iowa passed legislation that lowered the top individual income tax rate to 8.53 percent effective 2019. That rate is scheduled […]
Iowa’s top 12 percent corporate income tax is the highest in the nation. In 2018 the Iowa legislature passed a comprehensive tax reform law and the top rate will be lowered to 9.8 percent in 2021. Even at 9.8 percent, Iowa will still have a high corporate income tax rate. When it comes to tax policy it appears to be […]
Tax credits and incentives are often an enticing siren song that lures state and local policymakers. Both are seen as not only necessary for economic growth, but also to help solve a variety of policy problems. Whether at a state or local level, tax credits and incentives often fail to deliver on the intended economic growth. They often create a […]
A Legislative Year for Smaller Government and Smarter Solutions Iowa is in an exciting place as we start a new decade of the 21st century. Iowa’s economy is strong and our state budget has an estimated $470 million budget surplus. This does not mean that we do not have policy problems, but we can ensure that all Iowans will […]
Find the change of enrollment, teachers, and staff in your school district over the last 20 years. Public education in Iowa consumes 55 percent of the state General Fund. On a local level close to 42 percent of property taxes are spent on funding public education. It is a leading budget driver in Iowa and with the ongoing discussion of […]
Direct notification will make local elected officials think twice before increasing property tax rates because they know all citizens will be notified of the increase and its potential impact on their properties. This fall, local governments across Iowa will begin the process of creating their budgets. Local government, whether county, city, or school boards, depend heavily on property taxes […]
During the first decade of the 21st century Iowa’s population grew by an estimated 3.6 percent. Population is a major concern for Iowa’s policymakers because of the need for workers. Iowa’s low unemployment rate is even surpassed by the vast amount of open jobs that need to be filled. Solving Iowa’s workforce dilemma is a bi-partisan priority of Iowa policymakers. […]
High Tax Rates Hurt Iowa’s Economic Growth and Productivity What could be done: Speed up planned rate reductions, continue working toward a top individual income tax rate of 4 percent, and cut the top corporate income tax rate to 5 percent. While Iowa’s economy is doing well, when judged by the low unemployment rate, improvements can still be made […]
Reducing barriers will provide new opportunities for workers, attract new people to Iowa, and create a more competitive business environment. Among Iowa policymakers and business leaders, a consensus exists that a major problem for the state’s economy is a shortage of skilled workers. In fact, this need for workers often overshadows Iowa’s low unemployment rate. One area of regulatory […]
Iowa Has One of the Worst Business Climates in the Nation Iowa competes with 49 states for businesses and people. What policies will allow Iowa to be more competitive and attract more people, businesses, and entrepreneurial activity? While the economy overall is doing well, Iowa is still confronted with some serious economic problems. Whether it is slow population growth, […]
Forty-nine states and the District of Columbia have some sort of tax-increment financing program incentivizing companies to do things they otherwise would not do. The concept has merits, but the way it is applied in Iowa and elsewhere has problems. In fact, many local policymakers hate it, but they feel powerless to stop offering these giveaways. In Iowa, the […]
State and local politicians all over the country seem to love to dole out tax dollars to big businesses in an effort to get them to locate in their area. While they routinely argue that those subsidies will benefit the local economy, economic research does not support that conclusion. State and local economic development incentives may seem to help […]
Iowa’s massive tax credit programs come at a very real and harmful cost to its ability to provide basic public services. Any meaningful discussion of how much Iowa’s state and local politicians are handing out in tax credits must include the context of what governments could have accomplished with the revenues they won’t be receiving thanks to those tax breaks, […]
Iowans Deserve a Better Tax System Now Last year, Iowa’s robust tax reform took a giant step toward reducing burdensome taxes on families and businesses. Unfortunately, many Iowans may never see the benefits of that overhaul because the new law hamstrings its best features, tying them to future revenue benchmarks or “tax triggers” that Iowa may never reach. Those arbitrary […]
Senator, and Democrat presidential candidate, Elizabeth Warren declared recently that her goal if elected is “to be the last American president elected by the Electoral College” and her “second term to be elected by direct vote.” The debate is not new to American politics—whether the Electoral College should be replaced by a direct national popular vote for president—but the question […]