With Iowa’s primary elections behind us, the November matchups are officially set. Over the past several months, television commercials and campaign mailers have largely focused on biographies, personalities, and broad campaign themes. But as Election Day draws closer, voters are beginning to hear more about where the candidates stand on the issues that will shape the state’s future. One of the clearest opportunities came recently when both gubernatorial candidates, Democrat Rob Sand and Republican Zach Lahn, appeared separately on Simon Conway’s WHO Radio program. Among the topics discussed were their respective approaches to taxes and state revenue.
When Conway asked whether he would need to raise taxes to accomplish his agenda, Sand stopped short of making an unequivocal pledge.
Simon Conway: “Are you gonna have to raise taxes to do some of those?”
Rob Sand: “I don’t think so.”
Sand then pointed to two proposals that he said could generate additional revenue for the state. First, he advocated legalizing recreational cannabis and taxing it in much the same way Iowa taxes alcohol, “If we treat cannabis the way we treat alcohol… that’ll get us a couple hundred million dollars.”
Sand argued that he does not necessarily view this as a tax increase, instead describing it as “a different source of revenue.” He also proposed ending Iowa’s sales tax exemption for equipment purchased by data centers, arguing that large technology companies should no longer receive that preferential treatment, “Another couple hundred million if we end the sales tax exemption for equipment that is sold for data centers.”
When Conway questioned whether eliminating the exemption could discourage data center investment, Sand responded that the companies “don’t deserve a sales tax exemption.” Taken together, Sand estimated his two proposals could generate roughly $400 million in additional state revenue. Rather than discussing spending reductions or broader tax reform, his comments centered on identifying new sources of revenue while stating that he did not believe higher taxes would be necessary.
Although both candidates were asked about taxes, their answers reflected noticeably different philosophies. Sand focused on generating additional state revenue through new or expanded sources of taxation while avoiding broad-based tax increases. Lahn, by contrast, emphasized limiting government spending as the path toward further tax relief.
Like Sand, Lahn was asked directly whether he would need to raise taxes if elected governor. His answer was immediate and unequivocal.
Simon Conway: “Are you wanting to raise taxes on Iowans?”
Zach Lahn: “I’m not. At all. I don’t want to raise taxes…”
Lahn went on to make clear that he is not proposing increases to any of Iowa’s major taxes, “No sales tax, no income tax, no property tax raises, none of that. Not planning on raising those taxes. I’m very much in favor of lower taxes.”
Conway then asked whether Lahn would support the long-term goal of eliminating Iowa’s income tax altogether. Lahn responded that he would, “I would like to find a way to get the income taxes to zero. Absolutely.”
Rather than proposing new revenue sources to offset those reductions, Lahn argued that tax relief should come through a more efficient state government. “As we find ways that we’re wasting money in government… I think we’re gonna find ways to be able to lower and eventually eliminate income tax.”
As the campaign continues, Iowa voters will undoubtedly hear much more from both candidates about their plans for the state’s future. But on taxes, these interviews offered an early look at two distinctly different approaches. One focused on identifying additional sources of state revenue, the other focused on reducing the size and cost of government.
Of course, Iowa voters have a unique opportunity to directly craft income tax policy this fall. A Constitutional Amendment that would make it harder for politicians to raise your income taxes, by requiring a two-thirds vote of both legislative chambers, will be on the general election ballot in November.
Sand episode link Lahn episode link
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