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 […]
With three-quarters of the fiscal year behind us, the state is continuing to outperform last year. Iowa’s revenue report for March has been released and the data revealed net General Fund revenue for the month was $39 million (7.3%) above the March 2022 net revenue level. When broken down by the three largest sources (personal income tax, sales/use tax, and corporate income […]
Further protection for the taxpayer can be good policy, but lawmakers must ensure there are no unintended consequences along the way. The Iowa Legislature is considering a joint resolution that would establish protections for Iowa taxpayers in the state constitution. Senate Study Bill 1207 and House Study Bill 232 propose two amendments. The first would require two-thirds of both chambers […]
Iowa’s future has never looked brighter. When crafting the budget, policymakers must remain focused on limiting spending so our state can continue on the path to prosperity. The March Revenue Estimating Conference (REC) recently confirmed that revenue projections continue to be strong, demonstrating the resilience of Iowa’s economy. The REC is responsible for estimating state revenue, which is challenging when […]
Iowa is demonstrating financial resiliency on numerous measures, despite the uncertainty plaguing the broader American economy. The State Revenue Estimating Conference (REC) met on March 10, 2023 to evaluate the current (FY23) and the next two fiscal years (FY24 and FY25). Members on the REC mentioned that Iowa’s withholdings are starting to show impacts from the tax cuts, but Iowa continues to […]
By cutting taxes and state spending, Governor Kim Reynolds has put the state on the path to a robust economy.
Iowa’s fiscal foundation remains strong despite national economic uncertainty because of the state’s fiscal conservatism and prudent budgeting.
Governor Kim Reynolds has made Iowa a leader in conservative fiscal policy. This approach has already left more money in taxpayers’ pockets, and set the state on course to implement a low, flat income tax by 2026.
With two-thirds of the fiscal year behind us, the state is continuing to outperform last year. Iowa’s revenue report for February has been released and the data revealed net General Fund revenue for the month was $35.9 million (5.7%) above the February 2022 net revenue level. When broken down by the three largest sources (personal income tax, sales/use tax, and corporate income […]
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 […]
The benefit of switching to a set dollar exemption is taxpayers would receive a predictable and permanent form of relief that does not depend on the state’s fiscal situation. A tax bill proposed in the 2023 Legislature would switch Iowa from a credit to an exemption as the form of property tax relief for homesteads — or residents’ primary housing. […]
This article was published in the Des Moines Register, Cedar Rapids Gazette, and the Telegraph Herald. Iowa has 37 executive branch cabinet agencies — more than all neighboring states. The governor’s proposal is to reduce the number of executive-level agencies to 16, making government more efficient while saving taxpayer dollars. Since assuming office, Governor Kim Reynolds has placed a priority […]
Iowa’s taxpayers deserve better constitutional protections against the unquenchable appetite for government spending. Stronger limits can ensure spending remains under control, especially when fiscally conservative policymakers are absent. Introduction Going into the 2023 legislative session, Iowa’s fiscal foundation is strong. The Revenue Estimating Conference (REC), which is a three-person collaboration between the governor’s office and the Legislative Services Agency, is […]
Total net receipts YTD are 3.8% more than 2022, with growth in personal income tax, sales/use tax, and corporate income tax. Iowa’s revenue report for January has been released and the data revealed net General Fund revenue for the month was $0.1 million (0.1%) above the January 2022 net revenue level. When broken down by the three largest sources (personal income tax, […]
Total net receipts YTD are 4.8% more than 2021, with growth in personal income tax, 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 $267.3 million (43.5%) above the December 2021 net revenue level. When broken down by the three largest sources (personal income tax, […]
As long as spending is under control, the state will continue to be in a strong fiscal position to provide the core government services Iowans expect while continuing to lower taxes and spur economic growth. The State Revenue Estimating Conference (REC) met on December 14, 2022, to evaluate the current (FY23) and next (FY24) fiscal years. December REC meetings are […]
The most recent Revenue Estimating Conference prediction is aligning with actual results. January results will provide an even better understanding of revenue trends. Iowa’s revenue report for November has been released and the data revealed net General Fund revenue for the month was $371.9 million (-38.8%) below the November 2021 net revenue level. When broken down by the three […]
Even with continued inflation, a national recession, and a workforce shortage, the state’s net General Fund revenue for the month was $198.6 million (32.7%) above October 2021. Iowa’s revenue report for October has been released and the news for the month continues to depict a positive fiscal situation heading into the holiday season. Even under the weight of continued inflation, […]
Continued strong revenue collections are evidence that tax cuts were justified in the state of Iowa; without them, the state government would have withdrawn more from the economy than necessary to support its services. The State Revenue Estimating Conference (REC) met in October to evaluate the current and next fiscal years, FY23 and FY24. Compared with its previous forecast in […]
Iowa has far exceeded expectations again, as the books are now officially closed on fiscal year 2022. Just over six months ago, Iowa budget experts on the Revenue Estimating Conference (REC) forecast state revenues to be 4.3% more than the previous fiscal year. However, the state ultimately brought in 8% ($717 million) more than last year, resulting in a budget surplus of $1.91 billion.
This is the second year in a row Iowa experienced a billion dollar surplus, as the state ended fiscal year 2021 with a $1.24 billion surplus. While income tax cuts have been phasing in since 2018, these figures provide even more confidence for the coming rounds of rate cuts and the exemption of retirement income scheduled for 2023.
Governor Kim Reynolds announced that Iowa’s budget will end Fiscal Year 2022 with a $1.91 billion surplus, which follows Fiscal Year 2021’s $1.24 billion surplus. Iowa’s financial position is due to prudent budgeting and fiscally conservative policies. Governor Reynolds and the legislature are demonstrating that their fiscal policies work to create a healthy economy and a strong financial foundation.
Kraig Paulsen, who serves as the Director of both the Departments of Management and Revenue, stated that “Iowa’s strong financial status again proves that we continue to over collect from Iowa taxpayers.” As a result, Governor Reynolds and the legislature have made it a priority to return the money back to taxpayers.
Iowa’s revenue report for August has been released and the news for the month was encouraging. Even under the weight of continued inflation and a national recession, the state’s net General Fund revenue was $57 million (6.5%) above the August 2021 net revenue level.
When broken down by the three largest sources of revenue-personal income tax, sales/use tax, and corporate income tax-each category demonstrated monthly growth over 2021 (directly from the LSA Revenue Memo):
Iowa’s historic tax reforms this year focused on lowering the income tax rates paid by Iowans and the companies that employ them. The next step needs to be changing who is – and is not – paying those taxes. If Governor Kim Reynolds and the legislature want to truly position Iowa for the future, it’s time to take on the state’s addiction to special tax breaks.
Given the Center for Disease Control’s (CDC’s) recent easing of its COVID-19 guidelines, the national public health emergency appears near its end. The technical end of this emergency declaration will signify that the pandemic is officially over. And while that development will be cause for celebration, it will also trigger a major event for state governments and citizens enrolled in Medicaid.
The first month of Iowa’s new fiscal year is now behind us. While looking at a single month is just one small slice of the pie, it might be hinting at some economic trends we are seeing nationwide. Record low unemployment could be resulting in higher than expected income tax payments, while fast growing inflation and a looming recession might be causing people to spend less of their money.
One topic that comes up frequently when we sit down with taxpayers across Iowa is the number of people our state government employs. Iowans intuitively understand that there are very real and significant costs shouldered by the state for each member of its workforce. For instance, the Legislative Services Agency reports in their most recent Factbook that Iowa spent over $1.5 billion in total compensation just three years ago, accounting for roughly 20% of that year’s state budget. And that doesn’t even count employees at the three regents universities*!