High Tax Rates Hurt Iowa's Economic Growth and Productivity What could be done: Speed up planned rate reductions, continue working toward a top individual income tax rate of 4 percent, and cut the top corporate income tax rate to 5 percent. While Iowa’s economy is doing well, when judged by the low unemployment rate, improvements can still be made […]
Iowa Has One of the Worst Business Climates in the Nation Iowa competes with 49 states for businesses and people. What policies will allow Iowa to be more competitive and attract more people, businesses, and entrepreneurial activity? While the economy overall is doing well, Iowa is still confronted with some serious economic problems. Whether it is slow population growth, […]
Forty-nine states and the District of Columbia have some sort of tax-increment financing program incentivizing companies to do things they otherwise would not do. The concept has merits, but the way it is applied in Iowa and elsewhere has problems. In fact, many local policymakers hate it, but they feel powerless to stop offering these giveaways. In Iowa, the […]
State and local politicians all over the country seem to love to dole out tax dollars to big businesses in an effort to get them to locate in their area. While they routinely argue that those subsidies will benefit the local economy, economic research does not support that conclusion. State and local economic development incentives may seem to help […]
Iowa’s massive tax credit programs come at a very real and harmful cost to its ability to provide basic public services. Any meaningful discussion of how much Iowa’s state and local politicians are handing out in tax credits must include the context of what governments could have accomplished with the revenues they won’t be receiving thanks to those tax breaks, […]
Iowans Deserve a Better Tax System Now Last year, Iowa’s robust tax reform took a giant step toward reducing burdensome taxes on families and businesses. Unfortunately, many Iowans may never see the benefits of that overhaul because the new law hamstrings its best features, tying them to future revenue benchmarks or “tax triggers” that Iowa may never reach. Those arbitrary […]
Iowa needs to audit the Medicaid program to ensure that not only are the people who truly need the services are protected, but taxpayer dollars are not wasted. Amity Shlaes, an economic historian and author of the just-released Great Society: A New History, argues correctly that the “lesson of the 1960s is that political compromises with progressives can be […]
All indications, except for the precarious feel of the China trade war, seem to show that Iowa's economy is doing well. While we may be enjoying a temporary surge due to President Donald Trump’s economic policies, we must make decisions that grow and sustain our state for the long haul. Iowa competes with other states, both for jobs and people, […]
Iowa has one of the worst business tax climates in the country. The state cannot afford to wait for more tax relief. In 2018, the Iowa legislature gave taxpayers the first significant income tax relief legislation in 20 years. However, the relief will be phased in over multiple years, and the income tax rate reduction is subject to a […]
A businessman in Sioux City recently stated it very plainly to us: “We have stores in seven states. Iowa is more expensive for property taxes than any other.” Iowans are, for the most part, hardworking, friendly, and willing to help a stranger in need. Many call this “Iowa nice.” However, our state’s tax code has been ranked as one […]
FY 1999 to FY 2018 The amount of money collected from Iowans for the General Fund has increased from $4.4 billion to $7.38 billion in 20 years. During the last legislative session, the legislature began the process of lowering Iowa’s high tax rates, but we will still need further rate reduction. Lowering tax rates and unshackling Iowa’s economy from excessive […]
In just one year, over 9,000 Iowans moved to Florida, Texas, and South Dakota – all states that do not have an income tax. Since 1980, the nation’s population has grown by more than 40 percent, and Iowa’s population has only grown 7 percent. Tax rates have a direct impact on the population. States with lower tax rates have […]
The Cedar Rapids Gazette recently published a guest column from Walt Rogers, TEF Iowa Deputy Director about the impending implementation of the “Cadillac Tax.” Under the Cadillac Tax, the federal government will impose a 40 percent excise tax on all employer-sponsored health insurance plans, as well as workplace-provided health care and wellness programs. ‘Soaring deductibles and medical bi...
Iowa competes with 49 states for businesses and people. What policies will allow Iowa to be more competitive and attract more people, businesses, and entrepreneurial activity? While the economy overall is doing well, Iowa is still confronted with some serious economic problems. Whether it is slow population growth, a growing divide between rural and urban communities, or a shortage [&hellip...
Taxpayers are being forced by the government to subsidize businesses. State and local governments utilize tax credits and incentives to create economic growth. The argument is made that governments need to utilize credits and incentives to not only attract new businesses, but also help existing businesses expand. Whether it is tax credits, incentives, abatements, or the use of TIF […...
One state is trying to dig itself out of a hole… by digging deeper. Connecticut, just as with other progressive Blue States such as Illinois and California, is in a fiscal crisis. Policymakers in Connecticut have relied on increasing taxes and spending. “After eight years of uncontrolled spending and two of the largest tax increases in the history of […]
People vote with their feet. Iowa’s population and economic growth requires lowering income tax rates and controlling spending. There is clear evidence states that reduce tax rates and control spending not only grow economically but attract new residents. Tax rates matter and the more a government taxes something the less you get. High taxes not only discourage investment, entrepreneurship, [&he...
Sour grapes! Iowa has the fourth highest tax on wine in the nation. When considering wine, Iowa may not necessarily be the first region connoisseurs think about. However, Iowa’s wine industry does have an economic impact in our state. Iowans and tourists often visit one of nearly 100 wineries and the state government taxes wine at $1.75 per gallon, […]
Fraud and abuse within Medicaid are not only hurting those who truly need services, but it is also fleecing taxpayers. Several states have recently found fraud and abuse within their Medicaid programs. Fraud and abuse within Medicaid are not only hurting those who truly need services, but it is also fleecing taxpayers. Medicaid is a joint federal-state program, which […]
Lobster tail, crab, booze, and a foosball table were purchased in the Federal Government’s use-it-or-lose-it spending spree. Senator Joni Ernst (R-IA) won election to the United States Senate for promising to make the federal government “squeal.” The reference is in response to the out-of-control spending that has plagued the federal government for decades. The current federal budget process is br...
Taxpayer dollars lost to waste, fraud, or abuse are dollars that cannot fund services for those who truly need the services. Beth Wood, who serves as North Carolina State Auditor, reported the “state Department of Health and Human Services improperly paid more than $100 million in Medicaid claims during fiscal year 2018.” The “errors” consisted of “overpayments to providers, along with […...
Addressing our massive national debt should be a top priority. Iowans must understand that the national debt crisis will not only impact them directly, but also state finances. The national debt has reached $22 trillion. Federal spending is now approaching $4.7 trillion as Congress currently debates President Donald Trump’s proposed budget. James Grant, editor of Grant’s Interest Rate Obser...
Property tax bills might increase from valuation growth more than the promised reduction from increasing the sales tax. Many property owners in Polk County received a shock recently as they opened their new property tax assessments. Assessments in Polk County increased from 7.1 percent in Johnston to 11.6 percent in Des Moines. Numerous property owners saw a 10 percent […]
States with lower tax rates are creating more jobs than states with higher tax rates. The economic principle holds true: the more you tax something, the less you get. The Tax Cuts and Jobs Act has been a shot of adrenaline for job creation. This is especially true for states that have lower tax rates. Low tax states are […]
Constitutional spending limits are an effective means to control the growth of spending and protect the interests of taxpayers. Other states can learn a lesson from Colorado. Some will be disappointed this lesson is not about the legalization of marijuana, but rather Colorado’s Taxpayer’s Bill of Rights or TABOR. In 1992 Colorado voters adopted TABOR, a constitutional amendment that limits [&hell...