Iowa’s Next Step: Eliminate the Income Tax

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.

Iowa’s Historic Chance to Eliminate Its Income Tax

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, […]

Iowans Feeling the Squeeze

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 […]

President Biden’s Budget Threatens Main Street

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 […]

Tax Rates Never Sleep

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.

IRS Not Immune To Inflation

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 […]

Reynolds Gets an “A”

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 […]

Iowa’s Leading a Flat Tax Revolution

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.

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.

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.

Did Iowa Spark A Tax Reform Movement?

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 […]

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.

Somebody Must Call the Bingo Numbers!

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 […]