Conservative Budgeting Continues to Pay Off for Iowa
Governor Kim Reynolds announced that Iowa’s budget will end Fiscal Year 2022 with a $1.91 billion surplus, which follows Fiscal Year 2021’s $1.24 billion surplus. Iowa’s financial position is due to prudent budgeting and fiscally conservative policies. Governor Reynolds and the legislature are demonstrating that their fiscal policies work to create a healthy economy and a strong financial foundation.
Kraig Paulsen, who serves as the Director of both the Departments of Management and Revenue, stated that “Iowa’s strong financial status again proves that we continue to over collect from Iowa taxpayers.” As a result, Governor Reynolds and the legislature have made it a priority to return the money back to taxpayers.
Senator Jack Whitver: Iowa’s Quiet Conservative
In recent years, Iowa has led the nation in conservative policy reforms. Governor Kim Reynolds rightly deserves a great deal of credit for her leadership in implementing pro-growth tax reforms, championing a student-first approach to education, fighting against the woke cultural Marxist agenda and leading Iowa responsibility through the pandemic. Nevertheless, Governor Reynolds has been able to achieve many of these great accomplishments because of a conservative legislature. Iowa Senate Majority Leader Jack Whitver is a “quiet conservative” who is not only an ally of the Governor but is a crucial leader who is advancing a conservative policy agenda.
Biden vs Reynolds: Contrasting Visions
This year the Republican Party selected Governor Kim Reynolds to deliver the official response to President Joe Biden’s State of the Union Address. Governor Reynolds and President Biden offer two completely different views of both political philosophy and statesmanship. Selecting Governor Reynolds to speak on behalf of the Republican Party was not just a high honor, but it also reflected her leadership as a conservative. This contrasts with President Biden’s progressive philosophy and his embrace of a radical liberal agenda that threatens constitutional government.
It Was Right to Oppose NATO Expansion
By John Hendrickson In a vote of 95-1, the United States Senate approved the expansion of NATO (North American Treaty Organization) by allowing membership to two new nations Sweden and Finland. The only Senator to vote “no” was Senator Josh Hawley (R-MO). Senator Rand Paul (R-KY) voted “present.” In his floor speech before the vote Sen. Hawley made a powerful […]
Chinese Investment in American Agriculture
By John Hendrickson The growing influence and power of China should be a concern for all policymakers. China is growing more aggressive militarily and they are attempting to control resources across the globe, including the United States. China is also taking advantage of the United States in terms of trade. The United States is running over $350 billion trade deficit […]
Remembering David McCullough: America’s Historian
By John Hendrickson This week the nation lost a treasure with the passing of David McCullough. David McCullough was America’s historian and he brought history alive through his many books. McCullough was a gifted storyteller both in his writing and his narration of American Experience documentaries such as Ken Burns, The Civil War. Some of his work included biographies of […]
Herbert Hoover, America’s forgotten conservative
President Herbert Hoover led a remarkable life that was based upon public service, humanitarianism, and a belief that America is an exceptional nation. Nevertheless, many conservatives today are often critical of Hoover. Some have even described President Joe Biden as the next “Herbert Hoover” because of the current state of the economy. President Hoover’s policies during the Great Depression can be debated, and they deserve more consideration, more than just the standard knee-jerk reaction often provided by many conservative and libertarian commentators. Nevertheless, Hoover deserves better from conservatives. Herbert Hoover is a forgotten conservative statesman, whose philosophy and ideas can still serve as a guide for conservatives. In reflecting on Hoover’s conservatism, Richard Norton Smith, a Hoover biographer and presidential historian, wrote that “none has more relevance to our own time than Hoover’s role as a philosopher of modern conservative thought.”
The Fight to Restore Fiscal Sanity to Congress
The record high inflation that is plaguing Americans is being fueled by out-of-control federal spending. The federal government has spent over $6 trillion on COVID-19 related pandemic stimulus measures. The most recent, American Rescue Plan Act (ARPA) was not even needed as most states are experiencing large surpluses. The national debt is over $30 trillion and rising, which translates to an estimated $97,500 per citizen.
Fostering a Competitive and Friendly Tax Climate
Earlier this year, Governor Kim Reynolds and the Iowa Legislature passed the largest tax relief measure in the state’s history. The historic tax reform will replace the progressive income tax with a flat 3.90 percent rate by 2026. Iowa’s corporate tax rate will also gradually phase down until it reaches a flat 5.50 percent. Starting next year, the reform will repeal all state taxes on retirement income.
Unemployment Rate Continues to Fall: Biden Recession Ahead?
Iowa’s economy is in strong condition. Problems remain, such as the need for more workers to fill the thousands of open jobs throughout Iowa. Nevertheless, thanks to sound conservative fiscal policies from Governor Kim Reynolds and the legislature, the state is on a solid foundation. Conservative budgeting and pro-growth tax reforms are creating a stronger economy. However, national economic headwinds are creating problems and it appears more likely that an economic recession is imminent.
A Pro-Taxpayer Budget
The 2022 legislative session was historic for Iowa taxpayers. Nearly two months ago the legislature passed the largest tax relief measure in Iowa history, which was signed into law by Governor Kim Reynolds on March 1. What too many people overlook is that significant tax cuts like Iowa’s are only made possible by years of prudent and conservative budgeting.
Since 2018, Governor Reynolds and the legislature have placed an emphasis on passing tax reforms and restraining the growth of spending. This legislative session delivered the third (and largest) round of tax cuts yet, which was accompanied by a budget for Fiscal Year (FY) 2023 of $8.2 billion. This is a slight increase from the $8.1 billion FY 2022 budget and will likely mean yet another large budget surplus.
Iowa’s Unemployment Rate Continues to Decline
Iowa’s unemployment rate declined to 3 percent in April, which is down from 3.3 percent in March. “The number of unemployed Iowans decreased to 50,900 in April from 55,600 in March. The total number of working Iowans increased to 1,646,800 in April — a figure that is 10,000 higher than March and 45,100 higher than one year ago,” reported Iowa Workforce Development. Unemployment insurance claims are at their lowest level since 1973.
Is Iowa Prepared for the Federal Debt Crisis?
Uncle Sam is broke and the nation is on the verge of a serious debt crisis, if we are not already in one. The United States Government Accountability Office (GAO) recently released an alarming report regarding the nation’s fiscal health and their conclusions aren’t good. The report, which should be taken very seriously, flatly states, “The federal government faces an unsustainable fiscal future.” Consider the magnitude of Congress’s own watchdog cautioning the nation that we cannot continue down the same spending path we are on.
The Fight To Preserve Iowa’s Voice
It appears the Republican Party will maintain Iowa’s first in the nation status for its 2024 presidential caucus, but uncertainty remains whether Democrats will continue to have Iowa leadoff their party’s nominating process. Iowa’s first in the nation presidential caucuses have become a tradition and are an integral part of the state’s political culture. As a reminder, Donald Trump won Iowa’s Republican caucus in 2020 and Pete Buttigieg was the choice of Iowa Democrats that year.
Iowa Poised to Make a Move
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.
Foreign Acquisition of American Agriculture
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.
Truth-in-Taxation: A Rock Chalk Taxpayer Protection
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.
What Would Hamilton Say About China?
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.
Iowa’s Gold Standard Tax Reform
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.