Iowans are growing more frustrated with high property taxes and a solution is needed. Since 2000 Iowa property taxes have increased 122 percent more in comparison to population, inflation, and the cost-of-living adjustment for Social Security. The Tax Foundation ranked Iowa with the 10th highest property tax burden in the nation. As a property taxpayer would you consider voicing your […]
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 […]
In a recent interview with Tax Education Foundation of Iowa, Dr. Ernie Goss, Professor of Economics at Creighton University, discussed current issues and economic trends for both Iowa and the nation. Goss noted that Iowa’s economy “is still about three or four percent below pre-pandemic levels” but is on the road to recovery. Although both Iowa’s and the national economy […]
Creighton University Economics Professor, Dr. Ernie Goss joined TEF Iowa Deputy Director Walt Rogers to discuss how our state and national economy are recovering from the COVID-19 induced recession and what method is best to keep Iowa moving forward.
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 […]
Sales taxes, or taxes on consumption, are considered the least harmful in comparison to income and corporate taxes. This does not mean a state should have a high sales tax, because this too would be harmful for economic growth. States should work to establish a tax code that has low rates combined with simplicity and transparency. This would in turn […]
On January 11, 2021, the Iowa legislature is scheduled to reconvene. Besides crafting a budget, the legislature will also be confronted with the challenge of creating policies to help stimulate the economic recovery from COVID-19. Governor Kim Reynolds and the Republicans in the legislature have been following a policy of fiscal conservatism by keeping spending low and reducing tax rates. [&hellip...
Iowa’s is one of six states that still levies an inheritance tax. This obsolete tax not only punishes the individual who has died, but also punishes the intended recipient. Previous Iowa legislatures have eliminated the inheritance tax for spouses and other lineal beneficiaries. Yet, the tax remains for non-lineal recipients. In past sessions, the Iowa legislature has considered abolishing or [&he...
During the 2019 Iowa legislative session, the legislature passed a property tax accountability and transparency law. This new law was modeled after Utah’s Truth-in-Taxation law, which is considered the most “taxpayer friendly law.” The 2019 law requires local governments such as counties and cities to hold a public hearing if the proposed budget increases more than two percent (school district [&h...
Iowa is one of six states that levies an inheritance tax. The other five states include Nebraska, Kentucky, Pennsylvania, New Jersey, and Maryland. Indiana is the most recent state to repeal its inheritance tax in 2013. Even several high tax states do not have an inheritance tax. Previous Iowa legislatures ended the inheritance tax for spouses and lineal ascendants and […]
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 […]
Tuesday’s election was historic for Iowa. Citizens across Iowa set a new record in terms of voter participation. “Iowa is a red state,” proclaimed Governor Kim Reynolds as she celebrated the Republican victories in Iowa. The outcome of the presidential election is still uncertain, but what is certain is the fact that Iowans voted to affirm a policy of fiscal […]
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’s unemployment rate declined from 6 percent in August to 4.7 percent in September. The national unemployment rate for September is 7.9 percent. “September is the fifth consecutive month we have seen a drop in unemployment since the beginning of the pandemic and peak unemployment in April,” said Director Beth Townsend, Iowa Workforce Development. This is good news for Iowa’s […]
Should we build our deck? This is the question that one Iowa family shared with us recently. For years, this family has been saving to build a deck on the back of their house, but with the current economic uncertainty they are trying to decide whether this is the best use their money. Many Iowans can relate. Maybe for […]
The Cato Institute released their 2020 Fiscal Policy Report Card on American Governors, which “grades governors on their fiscal policies from a limited‐government perspective.” The report utilized “statistical data to grade the governors on their tax and spending records — governors who have restrained taxes and spending receive higher grades, while those who have substantially increased taxes an...
Governor Kim Reynolds announced, Iowa will “end Fiscal Year 2020 with a balance of $305.5 million in its General Fund.” Governor Reynolds and the Republican legislature have been following prudent budget policies. This has been especially difficult considering the COVID-19 pandemic and uncertainty in the agricultural markets. "Fiscal responsibility has put the state of Iowa in a strong posi...
Congress continues to debate whether more stimulus is needed to aid state and local governments from the economic recession caused by the COVID-19 pandemic. However, federal policymakers should avoid another bailout until states have been able to utilize all relief funds that have been appropriated by Congress. History has proven stimulus spending does not work to revitalize the economy [&h...
The issue of rapidly escalating property tax burdens is a concern for both individuals and businesses across Iowa. It is important to remember the ultimate source of high property taxes is excessive local government spending. Unless spending is controlled, any property tax relief will be limited. The objective of real property tax reform should not be to single out […]
Foreword This summer COVID-19 continues to be an albatross on the economy. Although Iowa’s economy is open, social distancing policies remain. Iowa's unemployment rate fell from 10 percent in May to 8 percent in June. Even with Iowa’s unemployment rate falling, fear of the virus is preventing people from resuming regular consumer activities. In addition, many small businesses are […]
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 [&hellip...
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 […]
Iowans are demanding property tax relief. High property taxes continue to be a problem for Iowa. The Tax Foundation recently examined the “effective tax rates on owner-occupied housing” across the United States. Iowa ranked 12th highest in the nation. Iowa relies heavily on property tax to fund local government. In 1934, Iowa enacted the sales and income tax to provide property tax relief. [&helli...
Iowa’s unemployment rate dropped from 8 percent in June to 6.6 percent in July. A year ago the unemployment rate was just 2.7 percent . The national unemployment rate for July stands at 10.2 percent. Iowa has the 7th lowest unemployment rate in the nation, and regionally only Nebraska (4.8 percent) and South Dakota (6.3 percent) have lower rates. Iowa’s […]