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 […]
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 […]
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 […]
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, […]
Iowa needs to audit the Medicaid program to ensure that not only are the people who truly need the services are protected, but taxpayer dollars are not wasted. Amity Shlaes, an economic historian and author of the just-released Great Society: A New History, argues correctly that the “lesson of the 1960s is that political compromises with progressives can be […]
FY 1999 to FY 2018 The amount of money collected from Iowans for the General Fund has increased from $4.4 billion to $7.38 billion in 20 years. During the last legislative session, the legislature began the process of lowering Iowa’s high tax rates, but we will still need further rate reduction. Lowering tax rates and unshackling Iowa’s economy from excessive […]
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, a growing divide between rural and urban communities, or a shortage […]
Taxpayers are being forced by the government to subsidize businesses. State and local governments utilize tax credits and incentives to create economic growth. The argument is made that governments need to utilize credits and incentives to not only attract new businesses, but also help existing businesses expand. Whether it is tax credits, incentives, abatements, or the use of TIF […]
It has been almost 100 years since government has shown spending restraint. What can be done to slow down our $22,000,000,000,000 national debt? The $22 trillion national debt symbolizes not only the broken budget process of today’s federal government, but decades of overspending by both Republicans and Democrats. MarketWatch recently reported how much the national debt has grown under […]
One state is trying to dig itself out of a hole… by digging deeper. Connecticut, just as with other progressive Blue States such as Illinois and California, is in a fiscal crisis. Policymakers in Connecticut have relied on increasing taxes and spending. “After eight years of uncontrolled spending and two of the largest tax increases in the history of […]
A pander bear should be the official mascot of the Democratic presidential debates. Never have so many candidates proposed so much spending. They are clearly trying to bribe voters to support the one who offers the most “free” stuff. In 1935, Ohio’s Robert A. Taft described President Franklin D. Roosevelt’s New Deal as “one of those fabulous creatures of […]
People vote with their feet. Iowa’s population and economic growth requires lowering income tax rates and controlling spending. There is clear evidence states that reduce tax rates and control spending not only grow economically but attract new residents. Tax rates matter and the more a government taxes something the less you get. High taxes not only discourage investment, entrepreneurship, […]
Fraud and abuse within Medicaid are not only hurting those who truly need services, but it is also fleecing taxpayers. Several states have recently found fraud and abuse within their Medicaid programs. Fraud and abuse within Medicaid are not only hurting those who truly need services, but it is also fleecing taxpayers. Medicaid is a joint federal-state program, which […]
Lobster tail, crab, booze, and a foosball table were purchased in the Federal Government’s use-it-or-lose-it spending spree. Senator Joni Ernst (R-IA) won election to the United States Senate for promising to make the federal government “squeal.” The reference is in response to the out-of-control spending that has plagued the federal government for decades. The current federal budget process is broken, […]
Taxpayer dollars lost to waste, fraud, or abuse are dollars that cannot fund services for those who truly need the services. Beth Wood, who serves as North Carolina State Auditor, reported the “state Department of Health and Human Services improperly paid more than $100 million in Medicaid claims during fiscal year 2018.” The “errors” consisted of “overpayments to providers, along with […]
Addressing our massive national debt should be a top priority. Iowans must understand that the national debt crisis will not only impact them directly, but also state finances. The national debt has reached $22 trillion. Federal spending is now approaching $4.7 trillion as Congress currently debates President Donald Trump’s proposed budget. James Grant, editor of Grant’s Interest Rate Observer, […]
Senator Kamala Harris (D-CA) wants Uncle Sam to spend $315 billion on teacher salaries. This is dangerous for states, school districts, and is not the role of the federal government. Senator Kamala Harris (D-CA), who is also a current Democrat presidential candidate, recently proposed a new federal program that would spend $315 billion over 10 years to increase teacher […]
Constitutional spending limits are an effective means to control the growth of spending and protect the interests of taxpayers. Other states can learn a lesson from Colorado. Some will be disappointed this lesson is not about the legalization of marijuana, but rather Colorado’s Taxpayer’s Bill of Rights or TABOR. In 1992 Colorado voters adopted TABOR, a constitutional amendment that limits […]
States that have lower tax rates and keep lower spending levels often see greater economic growth and more stable revenues. Government spending is a concern to many Iowans. Individuals, families, and businesses across Iowa all follow a budget that is not guaranteed to increase every year, yet Iowa’s budget continues to grow. Iowa’s state budget is $7.3 billion and even […]
How can Iowa make sure its recent tax reform is fully implemented, including the adoption of fewer and lower tax rates in 2023? The only proven way to lower tax rates is with spending restraint. Some of us in our personal lives have learned Dave Ramsey’s lesson that you cannot out-earn your own stupidity. No state can out-tax bad budgets. […]
The Iowa legislature is already making progress in creating a more friendly economic environment for job creators by passing needed tax reform legislation. The tax reform bill signed into law by Governor Kim Reynolds begins the process of reducing Iowa’s high individual and corporate tax rates. In addition, this legislation also calls for a strenuous review of Iowa’s many business […]