{"id":28850,"date":"2021-12-16T16:52:42","date_gmt":"2021-12-16T22:52:42","guid":{"rendered":"https:\/\/itrfoundation.org\/?p=28850"},"modified":"2023-01-16T15:09:13","modified_gmt":"2023-01-16T21:09:13","slug":"iowas_business_tax_climate_improves","status":"publish","type":"post","link":"https:\/\/itrfoundation.org\/iowas_business_tax_climate_improves\/","title":{"rendered":"Iowa’s Business Tax Climate Improves"},"content":{"rendered":"
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The Tax Foundation has released the 2022 State Business Tax Climate Index<\/em><\/a> today and for the second year in a row, Iowa has moved up two spots. Out of all 50 states, Iowa is now ranked 38 after landing at 42 in 2020\u2019s rankings. As a result of the comprehensive tax reform law in 2018 and other recent reforms, Iowa\u2019s tax code is becoming more competitive.<\/p>\n<\/div>\n<\/div><\/div>

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 <\/p>\n

Whether it is trying to attract businesses or people, tax rates matter. \u201cThe evidence shows that states with the best tax systems will be the most competitive at attracting new businesses and most effective at generating economic and employment growth,\u201d noted Janelle Cammenga and Jared Walczak, who are the authors of the State Business Tax Climate Index<\/em>.<\/p>\n

Iowa\u2019s tax climate is improving because of a series of pro-growth tax reforms that Governor Kim Reynolds and the legislature have passed since 2018.\u00a0 One reason in particular for Iowa\u2019s improved ranking in the Tax Foundation report is the recent lowering of the corporate income tax rate. This year Iowa\u2019s corporate tax rate, which was previously the highest in the nation at 12 percent, was reduced to 9.8 percent. Iowa\u2019s corporate tax rate will now have three brackets<\/a> that top out at 9.8 percent.<\/p>\n

While important, tax rates are not the only factor that drive the overall wellbeing of a state. Free-market reforms in other areas will help make a state more competitive, but tax reform provides a quick jump start. \u201cFurthermore, unlike changes to a state\u2019s health-care, transportation, or education systems, which can take decades to implement, changes to the tax code can quickly improve a state\u2019s business climate,\u201d wrote Cammenga and Walczak.<\/p>\n

During the 2021 legislative session, the Iowa legislature was one of 15 states that enacted tax reform. Numerous states are working to lower their taxes, and this makes competition fiercer between the states. \u201cIt is important to remember that even in our global economy, states\u2019 stiffest competition often comes from other states,\u201d the report\u2019s authors noted.\u00a0 Even with all of the income tax cuts across the country in 2021, more states are focusing on lowering taxes in 2022.<\/p>\n

Although Iowa\u2019s ranking has improved in the Index, it is still clear that tax reform is far from complete. In Table 1, the State Business Tax Climate<\/em> exhibits where Iowa ranks among the states in several major tax categories.<\/p>\n<\/div>\n<\/div><\/div>

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Source: Tax Foundation<\/a><\/em><\/p>\n

 <\/p>\n

These rankings demonstrate that Iowa lawmakers cannot be complacent in their efforts to reduce the tax burden on Iowans, particularly through income and property taxes.<\/p>\n

Bolstered by a \u00a0taxpayer relief fund<\/a> that is bursting at the seams and a revenue projection<\/a> for the year that continues to climb, Iowa has a historic opportunity to deliver more pro-growth reductions to the income tax code in 2022.\u00a0 Additionally, property taxes could be reigned in through a Truth-in-Taxation measure that places strong transparency and accountability responsibilities with local governments.\u00a0 Improvements on the income and property tax fronts will be key to Iowa continuing its climb up the rankings for 2023.<\/p>\n

 <\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"

The Tax Foundation has released the 2022 State Business Tax Climate Index today and for the second year in a row, Iowa has moved up two spots. Out of all 50 states, Iowa is now ranked 38 after landing at 42 in 2020\u2019s rankings. As a result of the comprehensive tax reform law in 2018 and other recent reforms, Iowa\u2019s […]<\/p>\n","protected":false},"author":649,"featured_media":28857,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","cybocfi_hide_featured_image":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[64,28],"tags":[],"jetpack_publicize_connections":[],"featured_image_urls":{"full":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-scaled.jpg",2560,1562,false],"thumbnail":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-300x300.jpg",300,300,true],"medium":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-500x305.jpg",500,305,true],"medium_large":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-768x469.jpg",640,391,true],"large":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-1024x625.jpg",640,391,true],"widgets_image_size":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-800x3400.jpg",800,3400,true],"folio":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-600x400.jpg",600,400,true],"1536x1536":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-1536x937.jpg",1536,937,true],"2048x2048":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-2048x1250.jpg",2048,1250,true],"bizberg_medium":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-300x300.jpg",300,300,true],"bizberg_gallery":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-500x400.jpg",500,400,true],"bizberg_blog_list":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-368x240.jpg",368,240,true],"bizberg_detail_image":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-825x400.jpg",825,400,true],"bizberg_portfolio_homepage":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-600x400.jpg",600,400,true],"bizberg_blog_list_no_sidebar_1":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-220x190.jpg",220,190,true],"bizberg_detail_image_no_sidebar":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-920x400.jpg",920,400,true],"rpwe-thumbnail":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-45x45.jpg",45,45,true],"sow-carousel-default":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-272x182.jpg",272,182,true],"advps-thumb-one":["https:\/\/itrfoundation.org\/wp-content\/uploads\/2021\/12\/AdobeStock_86318339-600x220.jpg",600,220,true]},"post_excerpt_stackable":"

The Tax Foundation has released the 2022 State Business Tax Climate Index today and for the second year in a row, Iowa has moved up two spots. Out of all 50 states, Iowa is now ranked 38 after landing at 42 in 2020\u2019s rankings. As a result of the comprehensive tax reform law in 2018 and other recent reforms, Iowa\u2019s tax code is becoming more competitive.   Whether it is trying to attract businesses or people, tax rates matter. \u201cThe evidence shows that states with the best tax systems will be the most competitive at attracting new businesses and most…<\/p>\n","category_list":"Income Taxes<\/a>, Taxes<\/a>","author_info":{"name":"John Hendrickson","url":"https:\/\/itrfoundation.org\/author\/jhendrickson\/"},"comments_num":"0 comments","yoast_head":"\nIowa's Business Tax Climate Improves - ITR Foundation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/itrfoundation.org\/iowas_business_tax_climate_improves\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Iowa's Business Tax Climate Improves - ITR Foundation\" \/>\n<meta property=\"og:description\" content=\"The Tax Foundation has released the 2022 State Business Tax Climate Index today and for the second year in a row, Iowa has moved up two spots. 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Hendrickson","author_link":"https:\/\/itrfoundation.org\/author\/jhendrickson\/"},"uagb_comment_info":0,"uagb_excerpt":"The Tax Foundation has released the 2022 State Business Tax Climate Index today and for the second year in a row, Iowa has moved up two spots. Out of all 50 states, Iowa is now ranked 38 after landing at 42 in 2020\u2019s rankings. As a result of the comprehensive tax reform law in 2018…","_links":{"self":[{"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/posts\/28850"}],"collection":[{"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/users\/649"}],"replies":[{"embeddable":true,"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/comments?post=28850"}],"version-history":[{"count":12,"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/posts\/28850\/revisions"}],"predecessor-version":[{"id":28866,"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/posts\/28850\/revisions\/28866"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/media\/28857"}],"wp:attachment":[{"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/media?parent=28850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/categories?post=28850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itrfoundation.org\/wp-json\/wp\/v2\/tags?post=28850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}