Iowa is fortunate to have so many legislators in office who understand that cutting tax rates has a major impact.
We hit the road again today for another legislative roundtable and our team was incredibly excited to visit Van Meter, the hometown of baseball Hall of Famer Bob Feller. Iowans for Tax Relief members joined NFIB members in a discussion with Representatives Dan Gehlbach, Carter Nordman, and David Young, and Senator Jesse Green. The free-flowing conversation touched on income taxes, property taxes, regulations, and even ITR Local and the ITR Live podcast.
While all four legislators have been strong advocates for taxpayers and small businesses across Iowa, one of the best points of the day was made by a small business owner in attendance:
“I’m a young entrepreneur. I’m looking to grow here in Iowa. What you’re talking about for property tax relief for homeowners is great. But we need to work on property taxes for businesses too. I’ve got 38 employees. If I have to pay more in property taxes just so my people have a place to come to work, I don’t have that money to put into wages.”
This entrepreneur’s point is the foundation of all we do here. Lower taxes mean money stays with homeowners and employers. They will put those funds to use in the private sector instead of growing the bureaucracy of government. Representative Young summed up his own viewpoint very clearly, “We trust you with your dollars. You can spend them more wisely than we ever could.”
Iowa is fortunate to have so many legislators in office who understand that cutting tax rates has a major impact. While states like Minnesota celebrate billions in new government spending, Representative Gehlbach made it clear why our lawmakers are working to deliver important benefits to Iowans, “When you lower taxes and let people keep more of their money, you see your economy grow.”
Economic growth doesn’t always happen organically, either. There is a fierce competition among the states for residents and businesses, and Iowa’s tax code needs to be a welcoming one. Senator Green believes Iowa is becoming a more attractive place to live and work each year, “We underestimate how many people and assets have left Iowa for a better tax climate. I can’t wait to promote these tax cuts that are still coming.”
Not only are there more tax cuts still being phased in as Iowa heads to a single, flat income tax rate of 3.9 percent, but there is an appetite among legislators and Governor Reynolds to keep those cuts going even lower. Representative Nordman explained that this can only be achieved through prudent budgeting, “When we talk about tax cuts, it’s important to talk about responsible spending. If we keep collecting more than we need, we are going to get it back to you.”
It’s no secret that Iowa has become the gold standard in tax reform. Other states marvel at what has been accomplished here and they are trying to do the same thing. But as we know, tax reforms are not easy to implement, even when the desire to make cuts is present. 2024’s legislative session will be an opportunity for Iowa to continue to lead the golden era of state tax relief.