The Tax Foundation has released the 2022 State Business Tax Climate Index today and for the second year in a row, Iowa has moved up two spots. Out of all 50 states, Iowa is now ranked 38 after landing at 42 in 2020’s rankings. As a result of the comprehensive tax reform law in 2018 and other recent reforms, Iowa’s […]
Did you know the state of Iowa has a fund called the Taxpayer Relief Fund? It’s true, that’s the actual name. While we are fans of almost everything with “tax relief” in its name, that’s not even the best part. Right now, that Fund has a balance of $1.1 billion. But it gets better: by the end of the […]
Governor Kim Reynolds and the legislature will have an opportunity to enact significant tax reform in 2022. Iowa’s fiscal house is in strong condition with a $1.24 billion surplus and the recent Revenue Estimating Conference (REC) projections show strong revenue growth for Fiscal Years 2022 and 2023. This is a historic opportunity to lower Iowa’s high income tax rates and […]
Keeping your economy open, conservative spending, and lowering tax rates. This is the economic formula that is building a solid fiscal foundation for Iowa. It is also the formula that 53.7 percent of Iowans support. A majority of Iowans, 59 percent, also support continued tax relief. This is the direct opposite of the tax and spend “shifting sand” agenda that […]
By Jonathan Williams and Lee Schalk | ALEC In our Nation’s Capital, there are unprecedented attempts are underway to remake America, with countless dangerous policy ideas being discussed. Unfortunately, many have not learned from the mistakes of the Affordable Care Act (ACA), where infamously, Speaker Nancy Pelosi told members of Congress they have to pass the bill to know what’s […]
“Today’s legislation ushers in a new era of growth and opportunity in Iowa,” said Governor Kim Reynolds when signing the 2021 tax reform bill passed by the legislature. “But we are not done yet. Next year, I’ll be proposing additional income tax cuts as we continue to make Iowa the most attractive place in America to open a business, raise […]
This year Iowa’s top corporate tax rate decreased from 12 percent, the highest in the nation, to 9.8 percent. Even at 9.8 percent, Iowa’s corporate tax rate is high. Many states have or are in the process of gradually lowering their corporate income tax rates. Nebraska recently passed legislation to reduce their corporate tax from 7.81 percent to 6.84 percent. […]
Governor Kim Reynolds is growing Iowa’s economy by making the tax code more competitive and ensuring that hardworking taxpayers get to keep more of their money. During her Condition of the State address, the Governor stated that not only do we “need to continue the conversation about cutting taxes,” but she also called for the repeal “of the unnecessary triggers […]
Toyota Financial Services recently announced that as a result of consolidating customer service centers, the Cedar Rapids facility will close and cut 600 jobs, due in part to the private sector employing 5% fewer people than a year ago. The consolidation of customer service centers is a loss for Iowa and a win for other states, such as Texas. Businesses […]
Tax rates matter, and they play a significant role in how competitive a state economy is in relation to other states. Higher tax rates penalize hard-working individuals, families, and businesses and deter economic growth, making a state less competitive. To make Iowa more economically competitive, Governor Kim Reynolds has made tax reform a priority. Taxes on income, which include both […]
Reforming a state tax code in order to provide relief, economic growth, and create a more competitive economic climate is straightforward in terms of economics, but difficult in the world of politics. A major reason for this difficulty is tax rate reductions are in direct conflict with numerous policy interests that demand new or additional spending. Iowa, alongside the vast […]
In 2018, Governor Kim Reynolds and the Iowa legislature passed a comprehensive tax reform measure that lowers both the individual and corporate income tax rates as well as broadens the sales tax base. Although the 2018 reform was historic, Iowa will still have high income tax rates. Iowa’s top individual income tax rate will be 6.5 percent and the […]
The Tax Foundation ranks Iowa as one of the top ten worst states for business climate. Iowa’s high tax rates not only discourage economic growth, but they make our state less competitive. South Dakota has no state income tax and Iowa is losing ground to our neighbor because they have a more competitive tax climate. It will be difficult for […]
States without an income tax are garnering a lot of attention for their economic growth and ability to attract people who are making an exodus from high tax states. Tax climates are important because they determine the overall economic health of the state. For every dollar that is taken by government in taxes is one less dollar individuals or businesses […]
Tax rates matter. They determine how much income an individual or business must pay to the government. For every dollar taken away by taxes, it is one less dollar an individual, family, or business has to save, spend, or invest. Tax rates also play a big role in how competitive a state economy is in relation to other states. Higher […]
Iowa relies heavily on income tax to fund state government. It is estimated, in Fiscal Year 2021, 57.3 percent of state revenues will be generated from income (individual and corporate) taxes, while 33.1 percent will originate from sales taxes. (Source: Legislative Services Agency) Since 1993, individual and corporate income taxes have a combined average of 64 percent […]
Recently TEF Iowa polled Iowans to get their view on some key public policy issues. In this guide you will find not only how Iowans think about these issues, but also public policy solutions that align with the interest of Iowans. TEF Iowa has developed this guide as a resource to provide legislative candidates additional information on some of the […]
Can you think of any area of your life that is not directly impacted by government? Government, whether at the federal, state, or local level, has grown considerably overtime. The escalating $26 trillion national debt is the most symbolic description of the growth of government. As more demands are placed on all levels of government, it creates a problem. As […]
This year, Indiana will once again lower its corporate income tax rate from 5.5 percent to 5.25 percent. Since 2012, Indiana has been gradually lowering the corporate tax rate from 8.5 percent, and the rate will continue to be lowered until it reaches 4.9 percent in 2022. Corporate tax rates vary greatly across the United States, from the highest tax […]
North Carolina is one of the state’s best prepared to deal with the budget challenges from the new coronavirus outbreak. It also represents the gold standard for state tax reform, and the connection between these two should not be lost. The Tar Heel state has successfully reduced tax rates, while controlling the growth of spending and funding the priorities of […]
Iowa begrudgingly endures some of the nation’s highest personal and corporate income taxes. Those high taxes hamper economic growth and make our state less affordable for families and less competitive for businesses. Even after recent improvements, tax reform remains a high priority for the Hawkeye State. So we applaud Governor Reynolds for proposing the Invest in Iowa Act and […]
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 […]
As a result of the federal Tax Cuts and Jobs Act and elimination of numerous job killing regulations, the national economy is growing and states have benefited tremendously from this growth. In 2018 the legislature passed the first major comprehensive tax reform legislation in a decade. Governor Kim Reynolds, in her Condition of the State Address, called for further tax […]
Iowa has the highest corporate income tax rate in the country at 12 percent. That rate, combined with the federal corporate tax, totals 29.5 percent. As part of the 2018 comprehensive tax reform law, the legislature lowered the rate. In 2021, the top corporate tax rate will still have four brackets, but the top rate will fall from 12 percent […]
With the federal government eliminating job-killing regulations and the implementation of The Tax Cuts and Jobs Act, it has led to national economic growth. Many states are using this as an opportunity to lower income tax rates. In 2018, Iowa passed legislation that lowered the top individual income tax rate to 8.53 percent effective 2019. That rate is scheduled […]