Direct notification will make local elected officials think twice before increasing property tax rates because they know all citizens will be notified of the increase and its potential impact on their properties. This fall, local governments across Iowa will begin the process of creating their budgets. Local government, whether county, city, or school boards, depend heavily on property taxes […]
During the first decade of the 21st century Iowa’s population grew by an estimated 3.6 percent. Population is a major concern for Iowa’s policymakers because of the need for workers. Iowa’s low unemployment rate is even surpassed by the vast amount of open jobs that need to be filled. Solving Iowa’s workforce dilemma is a bi-partisan priority of Iowa policymakers. […]
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 […]
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 […]
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 […]
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 bills are […]
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 […]
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 […]
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, […]
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, […]
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 […]
New York has a permanent property tax cap to slow the growth of tax bills. New York is not known as a tax friendly state. The Empire State’s high tax rates have received national attention as they have forced an exodus of people leaving New York in search of lower tax states. Although New Yorkers continue to struggle under […]
Unshackling the tax burden from Iowa small businesses does not just allow them to expand, but it also benefits their employees. Lana Pol, owner of several businesses in Pella and Des Moines recently testified before the United States House of Representatives Committee on the Budget. Ms. Pol was representing the National Federation of Independent Business (NFIB) and she spoke […]
This is either lazy reporting or intentionally inaccurate. Tax refunds do not indicate if a person’s tax liability increased or decreased. Americans across the country are filing their federal income taxes and many are seeing lower than expected refunds or getting the shock of having to pay more taxes to the federal government. Many liberal politicians and media outlets […]
Iowa has many attractive qualities in making it a great place to live. If policymakers want to grow our population, the best way to encourage growth is by lowering tax rates so our state is more competitive. Population trends show that states with low tax rates are gaining new residents, while an exodus is underway in high tax states. […]
Would a four percent increase in income next year help your household budget? For most families it would. Four percent isn’t enough for the city of North Liberty according to their city administrator and they want to increase the property tax rate another 1.2 percent. In recent years the city’s taxable valuation growth has increased between seven and 14 percent […]
There are renewed calls for a cigarette tax increase, despite evidence that sin taxes fall short in revenue generation and in their attempt at social engineering. Once again anti-smoking advocates are calling for a tax increase in Iowa, this time to the tune of $1.50 more on each pack of cigarettes. A cigarette tax is a sin tax; sin taxes are […]
How does Iowa compare with the other 49 states and Washington, D.C.? The individual income tax rate, corporate income tax rate, sales tax rate all as of January 1, 2019, and property taxes paid as a percentage of owner-occupied housing value for CY 2016 are ranked from 1 to 51 with 1 being the lowest and 51 the highest. Individual […]
How can Iowa make sure its recent tax reform is fully implemented, including the adoption of fewer and lower tax rates in 2023? The only proven way to lower tax rates is with spending restraint. Some of us in our personal lives have learned Dave Ramsey’s lesson that you cannot out-earn your own stupidity. No state can out-tax bad budgets. […]
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