Iowa Has the Homefield Advantage… with Taxes
To be fair, Nebraska’s policymakers have made good strides in tax policy in recent years, too. It’s just that Iowa has created an even better environment for opportunity in the Midwest.
Iowa’s Tax Reforms Propel State to New Heights in Competitiveness Ranking
Once ranked as one of the worst states (44th) for its tax climate, Iowa is becoming more competitive (20th) and will only improve as future reforms are implemented. The Tax Foundation has released its new State Tax Competitiveness Index, which replaces the previous State Business Tax Climate Index. This updated Index considers not only the business tax environment but also […]
Advancing Taxpayer Protections in the 2025 Legislative Session
Constitutional protections exist for other state funds, and it is time for Iowa taxpayers to receive that same benefit. Securing the tax reforms already enacted in Iowa by adding protections to the state constitution is essential to preserving the progress made since 2018. These reforms, particularly the shift to a flat tax, have transformed Iowa’s tax system into one that […]
Learn How Much It Will Cost You if Federal Tax Cuts Expire
Washington, D.C. sets up a game of chicken between Iowa taxpayers and the sunset of the Tax Cuts and Jobs Act. The Tax Cuts and Jobs Act of 2017 (TCJA) delivered significant tax relief to Iowans, from individuals to small business owners. However, key provisions of the TCJA are set to expire in 2025, leading to tax increases across Iowa, […]
Iowa’s Transition to a Flat Tax Will Benefit Taxpayers and the Economy
The benefits of a flat tax go beyond tax relief and economic growth. It makes the tax code simpler, more transparent, and more neutral, reducing both the burden of citizenship and the affliction of social division. On January 1, 2025, Iowa will transition to a 3.8 percent single-rate flat tax. Not only will this historic change provide tax relief for […]
Iowa Accelerates Transition to a Low Flat Tax
This article was published in National Review. The flat tax will now start a year earlier, and at a slightly lower rate, than originally planned. “The headline of this session is simple: Iowa’s income-tax rate will be the 6th lowest in the country,” stated Iowa senate majority leader Jack Whitver. Going into the legislative session, Governor Kim Reynolds and legislative leaders had […]
Iowa Completes a Pro-taxpayer Legislative Session: Over $1 Billion in Tax Relief
By Chris Hagenow and Grover Norquist This article was published in the Des Moines Register. Pro-growth tax reforms combined with conservative budgeting are strengthening Iowa’s economy and creating a strong fiscal foundation. Iowa is quickly becoming one of the most taxpayer-friendly states in the country. On the heels of delivering a historic income tax cut just two years ago, Republicans used […]
Pro-Growth Policies and Conservative Reforms Stand Out in Session Recap
“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 […]
Iowa Taxpayers Win Big at the End of 2024’s Session
The last several elections demonstrate that Iowans support the tax relief efforts of Governor Reynolds and those legislators who have voted to cut taxes. Iowa’s legislature continued the tax cut momentum late last week, by passing the fourth round of income tax reforms in recent years. This new legislation will push Iowa’s personal income tax down to a single, flat […]
Not all Iowans are Taxed the Same
Iowans Deserve Predictable Taxes Wherever They ROAM Iowa shares its border with six other states, and while many Iowans live and work in the Hawkeye state, there are a number of Iowans who work elsewhere. This results in not all Iowans being taxed the same. Depending on where they live and work, the state tax liability for Iowans can vary […]
Iowa’s Next Tax Reform Opportunity
This article was published in National Review. Iowa policymakers have an opportunity to allow taxpayers to keep more of their hard-earned income, make the state more competitive, and provide protection that will benefit taxpayers for generations. In 2022, Iowa confirmed its position as a leader in the state flat-tax revolution by phasing out the nine-bracket progressive income tax and replacing it with […]
Iowa’s Historic Tax Reform Opportunity
This article was published in the Cedar Rapids Gazette. The House and Senate plan creates a mechanism to eventually eliminate the income tax. In 2022, the CATO Institute’s Fiscal Policy Report Card on America’s Governors ranked Iowa Governor Kim Reynolds the most fiscally conservative governor in the nation. Since 2018, Governor Reynolds and the legislature have placed a priority on […]
House and Senate Release Joint Plan for Tax Cuts, Future Elimination
The Iowa legislature is poised to deliver the benefits of conservative budgeting and pro-growth policies to taxpayers in our state. Heading into the legislative session Governor Kim Reynolds and legislative leaders stated that not only would further income tax reform be a priority, but an opportunity existed to accelerate planned income tax rate reductions. Under current law the income tax rate […]
Governor Proposes New Tax Cuts; Legislators Signal Support for Pro-Growth Policies
Iowa’s income tax would drop to 3.5 percent next year under the governor’s proposal. In her Condition of the State address, Governor Kim Reynolds outlined a pro-growth policy agenda, including a new round of income tax cuts. Gov. Reynolds stated, “ the condition of our state is truly strong.” The reason for this is the fiscally conservative policies Iowa’s elected officials have been […]
Accelerate, Lower, and Eliminate: A Pro-Growth Blueprint to Make Iowa’s Tax Code More Competitive
Additional income tax cuts will generate hundreds of millions of dollars per year in economic growth for Iowa. After three significant rounds of tax cuts since 2018, Iowa firmly established itself as the national leader in state-based tax reform. Now, the state government has a real possibility of eliminating the income tax, making Iowa the first state to do so. […]
Session Preview: Constitutional Amendments
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 […]
Kim Reynolds is correct to prioritize more income tax reform in 2024
This article was published in the Des Moines Register.
Once again, one of Gov. Kim Reynolds top priorities for the 2024 legislative session is income tax reform. A champion of fiscal responsibility, the governor knows restraining spending and returning tax dollars to the hard-working Iowans who paid them is the best path to economic growth. Once one the of the highest-income-tax states in the nation, Iowa in 2022 passed the most comprehensive tax reform in the United States.
Session Preview: Income Taxes
Policymakers could seize the opportunity to place Iowa’s income tax on a path toward elimination. Iowa is in a strong position to enact even further income tax reforms in 2024, and it must. As more states cut income tax rates, Iowa cannot become complacent. The competition among the states for businesses, jobs, and people is fierce. This is especially true […]
2024 Legislative Session Preview
Personal income taxes will not be the only focus in the upcoming legislative session. Iowa’s fiscal conservatism will also touch on corporate taxes and property taxes. Iowa is currently in a robust financial position, a testament to a series of strategic policies and legislative changes that have shaped its economic landscape. As the 2024 legislative session approaches, the state’s financial […]
Iowa vs. Minnesota: The Future of State Fiscal Policy
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 […]
Pro-Growth Tax Reform Improves Iowa’s Tax Competitiveness
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 […]
What Happened to the Oklahoma Special Session?
Perhaps the real lesson that can be learned from Oklahoma is that tax reforms are not easy to implement, even when there is unified control of a state Capitol. On October 3, 2023, the Oklahoma legislature reconvened for a special session. Governor Kevin Stitt (R) called the special session for the specific purposes of income tax reduction, tax fairness, and […]
Oklahoma May Eliminate the Income Tax
Oklahoma wants to follow the Iowa playbook: controlling government spending is vital to a successful tax reform policy. Oklahoma Governor Kevin Stitt has called a special legislative session, convening on October 3, 2023, for the purpose of income tax reduction and increased transparency within the state budget. The governor is not merely pushing for income tax relief but is asking the legislature […]
Iowa Will Have a Lower Corporate Tax Rate in 2024
Iowa’s tax code is becoming more competitive, allowing individuals and businesses to flourish in a low-tax environment. When Iowa’s corporate income tax was 12 percent, it was one of the highest in the nation. Starting on January 1, 2024, the top tax rate applied to corporations’ income will be lowered from its current 8.4 percent, which is still tenth-highest, to […]
Governor Reynolds Wants More Tax Cuts
Iowa’s Chief Executive views the budget surplus as an over collection of taxes. In announcing Iowa’s $1.83 billion surplus, Governor Kim Reynolds stated her desire to continue cutting taxes in 2024, “Some see a surplus as government not spending enough, but I view it as an over collection from the hard-working men and women of Iowa… I look forward to cutting […]
