In 2022, Iowa led what has been called a state-level “flat-tax revolution.” The last few years have been historic for state-based tax reform, with the Tax Foundation reporting that 43 states passed some form of tax reform in 2021 or 2022 and in 2023 nearly a dozen states continued the trend. Now, Iowa has the opportunity to build on its previous good work in this area by being the first state in the nation to eliminate its 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 […]
The Iowa Legislature should seize the opportunity to speed up income tax cuts and lead the state toward a full income tax repeal. The last few years have been historic for state-based tax reform across the country. The Tax Foundation reports that 43 states passed some form of tax reform in 2021 and 2022. In 2022, Iowa led the nation in what […]
This article was published in the National Review. The Hawkeye State must keep leading the way with pro-growth, pro-family economic policies. In 2022, Iowa led what has been called a state-level “flat-tax revolution.” The last few years have been historic for state-based tax reform, with the Tax Foundation reporting that 43 states passed some form of tax reform in 2021 or 2022. In 2023, […]
The recent ITR Foundation poll shows Iowans are concerned about their own financial stability and the role inflation and government tax-and-spend policies have on their budget. Iowans are increasingly concerned about the economy, with high inflation and national economic uncertainty contributing to their anxiety. A recent poll conducted by ITR Foundation found that 74.4 percent of Iowans believe the nation is heading […]
Click here to download your copy of Iowans Favor Income Tax Constitutional Protection one-pager. Iowa has made great progress in reducing income taxes over the past few years. One question that is now being asked is, what is the best way to protect taxpayers from dramatic and damaging increases in the future? The most recent ITR Foundation poll found that over 60% of Iowans […]
Iowa taxpayers and small businesses would be better served if federal policymakers made the TCJA permanent, pushed back on proposed tax increases, and fought inflation by cutting government spending. This article was published in The Cedar Rapids Gazette. The Tax Cuts and Jobs Act (TCJA) brought historic tax relief to taxpayers. Taxpayers and small business owners across Iowa benefited greatly […]
As Iowans wrapped up their New Year’s celebrations in January, they were greeted by a new tax code with lower income tax rates for families and businesses. With even more tax cuts scheduled, and a complete elimination being considered, Iowa’s lawmakers are steadily improving our state’s tax climate. When considering the top corporate income tax rate, Iowa has moved from the highest rate in the country (50th) at 12.00 percent in 2018, to a better, but still high rate of 8.40 percent (41st) in 2023. Similarly, Iowa’s individual income tax rate has moved from 8.98 percent (46th) in 2018, to 6.00 percent (33rd) this year.
A Des Moines Register poll of Iowa adults conducted in early March found majorities favoring property tax cuts and gradual elimination of the state’s individual income tax. One question asked whether Iowans favor “cut[ting] property taxes, limiting what local governments could spend on services.”
Whether it is the passage of a universal ESA or the largest tax reform in Iowa’s history, Governor Kim Reynolds and the Iowa Legislature have made some big changes that have made Iowa a great place to live, work, and raise a family. Two years ago, no state gave all parents money to help educate their children.
While some proposals want to fund more spending, a bill has been introduced in the Senate to utilize the Taxpayer Relief Fund to phase-out the income tax altogether. “Keep your eye on one thing and one thing only: how much government is spending, because that’s the true tax,” the late economist Milton Friedman once stated. Paying out public dollars is the […]
Senator Dawson introduced a bill (SSB1126) that calls to speed up the individual income tax reductions and reduce the overall rate to 2.5 percent by 2028 while eventually eliminating the income tax altogether. The Iowa Senate kicked off February with a bang by introducing a measure to lower both individual and corporate tax rates, before placing the individual income tax […]
Tax year 2023 is the first time taxpayers in Iowa will enjoy savings from this legislation. Some Iowans may see withholding adjustments on their paychecks, while others may not notice changes until next year when they begin to work on their 2023 tax returns. Happy New Year… and happy lower taxes! Iowa made a big splash in the tax world […]
With a healthy state budget, lower income and corporate tax rates, the elimination of retirement income tax, and the legislature eyeing property tax reform, 2023 should be a great year for taxpayers. Iowa taxpayers will start seeing income tax relief in just a few weeks as a result of the historic tax reform the legislature passed and Governor Kim Reynolds […]
Once Iowa’s tax reform is fully implemented, its tax ranking should jump to 13th-best in the nation — one of the best in the Midwest, leaving the other Big Ten teams in the dust. The Nebraska Cornhuskers are traveling to Iowa City today to play the Hawkeyes, but Iowa has more than a homefield advantage for the game. Football […]
Don’t let these changes fool you. Nobody should believe that the pain of inflation is going to be erased by these IRS adjustments. The federal government’s tax collecting agency released their annual inflation adjustments this month, proving that even the IRS is not immune to inflation. These updates are an attempt to keep inflation from leading to a de facto […]
Iowa Governor Kim Reynolds was not only one of just five governors who received an “A” grade, but her score was the highest in the nation! The Cato Institute has released its 2022 Fiscal Policy Report Card on America’s Governors. Iowa’s Kim Reynolds was not only one of just five governors who received an A grade from Cato, but this […]
A flat tax revolution is sweeping the states. Iowa, Mississippi, Georgia, Arizona, and Idaho have all enacted legislation to move toward a flat income tax rate. “In more than a century of state income taxes, [until these recent changes,] only four states have ever transitioned from a graduated-rate income tax to a flat tax,” notes Jared Walczak, Vice President for State Projects at the Tax Foundation.
Governor Kim Reynolds and the Iowa legislature delivered pro-growth tax reform by balancing restrained spending growth with income tax cuts. Years of prudent budgeting enabled the passage of historic tax reform in 2022, which will create a flat 3.9 percent income tax rate by 2026.
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.
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.
This year may be one of the most historic for states lowering income tax rates across the nation. So far, at least six other states have joined Iowa in passing tax cuts, while many more have tax reform legislation under consideration. The graph above illustrates the new rates that will be delivered to individual taxpayers in their respective states. The […]
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.
Reports that the Iowa Legislature eliminated the retirement income tax so that there would be enough people around to call the Bingo numbers have proven to be false. Okay, while that thought may have never actually crossed anyone’s mind, our elected officials were certainly thinking about how to keep retirees in our state when they eliminated Iowa’s tax on retirement […]
When major legislation is passed -and make no mistake, Iowa’s tax reform package is as major as it gets- it’s natural for one to wonder, “What does this mean for me?” We will answer that question for at least a few of the aspects of House File 2317. While these explanations are not meant to be exhaustive, nor do they […]