Officials demonstrate fiscal restraint even as they continue to up the state’s investment into education and healthcare. The passage of the appropriations bills that make up the Fiscal Year (FY) 2025 budget marked the final major legislative action of the session. Since spending is the primary driver of public policy, a priority for Governor Kim Reynolds and legislative leaders has […]
“The headline of this session is simple: Iowa’s income tax rate will be the 6th lowest in the country…” The Iowa legislature has adjourned, and this session has resulted in some important pro-growth policy victories that provide further tax relief to Iowans, while also making Iowa’s economy more competitive and government more efficient. As Senate Majority Leader Jack Whitver said, “The […]
This legislation properly reminds Iowa cities and counties of their expected role, while protecting property taxpayers from funding a flawed poverty prevention program. Taxpayers across Iowa were provided with another protection by the Iowa Legislature this week, as the House and Senate sent a bill to Governor Reynolds that bans local governments from participating in guaranteed income programs. House File […]
This article was published in the Des Moines Register and The Gazette. With constitutional protection, if a future legislature wanted to increase the income tax, then it would have to either build a consensus or have supermajority control of both chambers. “It’s funny that government can never afford to cut taxes or spending, but taxpayers are never asked whether they […]
The goal of the FY25 budget should be to reflect the average taxpayer’s ability to pay for the budget. Sound tax policy begins with conservative budgeting. Last week both the Iowa House and Senate announced their budget targets for the Fiscal Year 2025 budget. Budget targets are used as benchmarks to determine how the various departments and programs within the […]
“There is no reason to think the state cannot continue down the path of leaving more money in Iowans’ pockets.” -Iowa Department of Management Director Kraig Paulsen The Revenue Estimating Conference (REC), which has the arduous task of estimating Iowa’s tax revenue, recently met to provide an updated revenue forecast. The REC slightly lowered their revenue estimate for the current […]
Constitutional protections exist for other state funds, and it is time for taxpayers to receive that same benefit. As part of a historic income tax reform proposal the Iowa House and Senate are introducing two proposed amendments to the Constitution that would serve as protections for taxpayers. Both amendments would make it more difficult for a future legislature to increase […]
Counties are cashing in on hefty property taxes from high assessments, and reducing rates won’t halt financial gains. You might hear your county officials complaining they are facing dire straits this year because of the new property tax law. The truth is that too many counties have been cashing in on hefty property taxes from rapidly increasing assessments, and redirecting […]
Diverting Taxpayer Relief Fund dollars to property tax relief would simply be another instance of the state subsidizing local government spending growth. During the 2023 legislative session, the Iowa Legislature began to consider two important constitutional amendments that would provide protection for Iowa taxpayers. If lawmakers are interested in continuing to stand up for the taxpayer, they should again contemplate […]
Total net receipts YTD are 0.7% less than last year, with a reduction in personal income tax and growth in sales/use tax and corporate income tax. Iowa’s revenue report for December has been released and the data revealed net General Fund revenue for the month was $11.1 million (-1.3%) below the December 2022 net revenue level. When broken down by the […]
Iowa’s status as a national leader on tax policy would not be possible but for the less-heralded fact that Iowa is a national leader when it comes to conservative budgeting, as well. Sound budgeting is at the heart of all good public policy. Pro-growth tax reform cannot occur without prudent budgeting and spending restraint. Thanks to the wise priorities of both Governor Reynolds and the legislature, Iowa’s fiscal foundation is strong.
Access to information has become a basic government service, making democracy work. Citizens need the ability to track what government does, and policymakers must produce and have access to historical records. While “good governance” is a broad and subjective term, reviewing the outcomes of public policy decisions can tell us whether it exists or not. At the local government level, […]
Revenue is falling more slowly than initial estimates, and there is still room for more tax cuts. Heading into the 2024 legislative session, Iowa is in a strong financial position. This was the message from the Revenue Estimating Conference (REC), which is tasked with the difficult job of predicting state tax revenue. Even with phased-in tax reductions, Iowa revenue remains […]
This article was published in Real Clear Policy and Nation Review. When people vote with their feet, they prefer lower taxes and the slim, trim state government Governor Reynolds offers in Iowa. “A tax-cutting wave is sweeping over America’s states,” The Economist claims in a recent feature, and Iowa, it argues, has “emerged as America’s tax-cutting champion, a paragon […]
The core principle is that an effective limit should reflect the average taxpayer’s ability to pay for the budget. Introduction The rewards of Iowa’s leadership in fiscal conservatism become more evident every year. Using a sustainable budgeting approach, the state has put its burdensome personal income taxes on a steady path of rate cuts. This proven pro-growth approach has worked over the […]
The Tax Foundation’s ranking, in combination with continuing surpluses, proves that fiscal conservatism is working in Iowa. Tax rates matter. They are a major factor determining the economic well-being of a state in both the money they leave in the economy and the impressions decision-makers have when comparing states. The Tax Foundation recently released its annual 2024 State Business Tax […]
Total FY2023 net revenue exceeded the REC’s March estimates. Iowa’s recently released revenue report for September revenue contains the final accounting for fiscal year 2023 (FY23). In early 2022, the Iowa Legislature enacted historic income tax reform reducing top rates and allowing taxpayers to keep more of their hard-earned income. The three-member Revenue Estimating Conference (REC) predicted Iowa would bring in less money in FY23 than the prior […]
75 percent of Iowans will see a bond question on their November 7th ballot. The November 7, 2023, election ballots in 50 Iowa counties will have bond questions that total $1.72 billion in potential new spending statewide. A majority of the state’s people, 75%, live in counties with bond referenda next month, and these residents face their local governments saddling […]
The State of Iowa and local governments would be wise to reduce their dependence on federal funding. The U.S. House of Representatives returned to Washington, D.C. after its summer recess and went right to work. A looming federal budget battle may result in a government shutdown, and both chambers of Congress only have a few more working days scheduled before the September […]
With exceptional valuation growth over the years, it is time to force local governments to cut back and live within their means. Property taxes are, without a doubt, the most hated tax in Iowa. Rightfully so, as the bill goes up year after year and the services Iowans receive do not equate to the increase. Iowa currently has the 10th highest property tax […]
This article was published in the Washington Examiner. Too often the voice of the taxpayer is drowned out by louder special interest lobbyists. Protecting the Taxpayer Relief Fund in the Constitution would ensure that the interests of taxpayers — and their money — are secure. As a taxpayer, did you know that the state of Iowa is currently holding close […]
We have entered a new fiscal year with lots of uncertainty about the national economy and Iowa is poised to weather whatever events may happen. The first month of Iowa’s new fiscal year is now behind us. While a single month is just one small slice of the pie, it sets the stage for the next round of income tax […]
This article was published in the Washington Examiner and Dubuque Telegraph Herald. Iowa should use the significant progress made in the nation lowering income tax rates as a source of momentum for further improvements. The last few years have been historic for state-based income tax reforms, and Iowa has become a national leader in this revolution as a result of […]
This article was published in National Review. On the current path, it seems inevitable that the federal government won’t live up to its obligations to the states. State policy-makers need to find ways to push back against Washington, D.C. The late constitutional scholar James McClellan described federalism as a principle that the American Founders had woven “into the constitutional fabric” of […]
With the fiscal year now over, the state will continue its accounting of 2023. In state government finance, July 1 marks the start of a new fiscal year- Happy 2024, everyone! The start of a new year means we can now begin to look back at the full year of 2023 activity. And while Iowa’s books are technically closed on 2023, […]