Officials demonstrate fiscal restraint even as they continue to up the state’s investment into education and healthcare. The passage of the appropriations bills that make up the Fiscal Year (FY) 2025 budget marked the final major legislative action of the session. Since spending is the primary driver of public policy, a priority for Governor Kim Reynolds and legislative leaders has […]
“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 […]
This article was published in the Des Moines Register and The Gazette. With constitutional protection, if a future legislature wanted to increase the income tax, then it would have to either build a consensus or have supermajority control of both chambers. “It’s funny that government can never afford to cut taxes or spending, but taxpayers are never asked whether they […]
The goal of the FY25 budget should be to reflect the average taxpayer’s ability to pay for the budget. Sound tax policy begins with conservative budgeting. Last week both the Iowa House and Senate announced their budget targets for the Fiscal Year 2025 budget. Budget targets are used as benchmarks to determine how the various departments and programs within the […]
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 […]
Total net receipts YTD are 0.7% less than last year, with a reduction in personal income tax and growth in sales/use tax and corporate income tax. Iowa’s revenue report for December has been released and the data revealed net General Fund revenue for the month was $11.1 million (-1.3%) below the December 2022 net revenue level. When broken down by the […]
Iowa’s status as a national leader on tax policy would not be possible but for the less-heralded fact that Iowa is a national leader when it comes to conservative budgeting, as well. Sound budgeting is at the heart of all good public policy. Pro-growth tax reform cannot occur without prudent budgeting and spending restraint. Thanks to the wise priorities of both Governor Reynolds and the legislature, Iowa’s fiscal foundation is strong.
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 […]
The core principle is that an effective limit should reflect the average taxpayer’s ability to pay for the budget. Introduction The rewards of Iowa’s leadership in fiscal conservatism become more evident every year. Using a sustainable budgeting approach, the state has put its burdensome personal income taxes on a steady path of rate cuts. This proven pro-growth approach has worked over the […]
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 […]
Total FY2023 net revenue exceeded the REC’s March estimates. Iowa’s recently released revenue report for September revenue contains the final accounting for fiscal year 2023 (FY23). In early 2022, the Iowa Legislature enacted historic income tax reform reducing top rates and allowing taxpayers to keep more of their hard-earned income. The three-member Revenue Estimating Conference (REC) predicted Iowa would bring in less money in FY23 than the prior […]
This article was published in The Gazette. Governor Reynolds is working to reform state government and make it more accountable and efficient for the taxpayer. Former President Herbert Hoover chaired two commissions during the presidential administrations of President Harry S. Truman and Dwight D. Eisenhower. The Hoover Commissions were looking to make government more efficient. As a result of the […]
This article was published in the Washington Examiner. Too often the voice of the taxpayer is drowned out by louder special interest lobbyists. Protecting the Taxpayer Relief Fund in the Constitution would ensure that the interests of taxpayers — and their money — are secure. As a taxpayer, did you know that the state of Iowa is currently holding close […]
We have entered a new fiscal year with lots of uncertainty about the national economy and Iowa is poised to weather whatever events may happen. The first month of Iowa’s new fiscal year is now behind us. While a single month is just one small slice of the pie, it sets the stage for the next round of 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 […]
This article was published in National Review. On the current path, it seems inevitable that the federal government won’t live up to its obligations to the states. State policy-makers need to find ways to push back against Washington, D.C. The late constitutional scholar James McClellan described federalism as a principle that the American Founders had woven “into the constitutional fabric” of […]
With the fiscal year now over, the state will continue its accounting of 2023. In state government finance, July 1 marks the start of a new fiscal year- Happy 2024, everyone! The start of a new year means we can now begin to look back at the full year of 2023 activity. And while Iowa’s books are technically closed on 2023, […]
Instead of crying wolf every time a minimal amount is cut from their revenue growth, local governments should rein in their spending. The dust hasn’t even settled on a new property tax law that provides tax breaks to seniors and veterans and local governments are already crying wolf. An article published by Axios Des Moines claims the new property tax […]
This article was published in The Cedar Rapids Gazette. Media outlets such as The Wall Street Journal are beginning to recognize that the Red-state model of limited spending and pro-growth tax reform is working. A recent editorial by The Wall Street Journal highlights several progressive Democrat “Blue” states confronting budget problems as a result of overspending and tax increases. States […]
At a time when property valuations are increasing and Iowans are struggling financially from inflation, local communities must focus on paying their debt off, not finding new spending projects. Iowa governments took on nearly 7% more debt — almost $1.3 billion — in fiscal year 2022 (FY22). The current Outstanding Obligations Report from the state treasurer shows this to be […]
Lawmakers at every level have control over how much the government spends. If our nation’s lawmakers need an example to emulate for good habits, though, Iowa can show them the playbook. During the most recent debt ceiling drama in our nation’s capital, modest spending reductions were exchanged for an increase in the federal government’s borrowing limit. While that compromise is […]
Both Iowa and Minnesota offer contrasting visions for their respective states and for America’s future. If you want to know what the left would do to America, pay close attention to what it is doing to Minnesota. This article was originally published in Real Clear Policy. There is no Berlin Wall or 38th Parallel separating Lyle, Minnesota, from Mona, Iowa, […]
When the federal government is forced into true spending cuts, dollars sent to the states could be first on the chopping block. There is an old adage that says a successful compromise is achieved when all parties involved walk away unhappy. That take might be too cynical, but it is also grounded in reality. And if that definition is accurate, […]
With the fiscal year almost over, the state is performing close to the latest REC forecast. Iowa’s revenue report for May has been released and the data revealed net General Fund revenue for the month was $189.9 million (-15.4%) below the May 2022 net revenue level. When broken down by the three largest sources (personal income tax, sales/use tax, and corporate income […]
This article was published in Real Clear Policy, the Cedar Rapids Gazette, and the Telegraph Herald. Both Governor Reynolds and legislative leaders have made Iowa a fiscal example for other states and the federal government to follow. President Calvin Coolidge regarded “a good budget as among the most noblest monuments of virtue.” President Coolidge’s fiscal conservatism is being exemplified at […]