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Research Activities Credit cost leaps in 2019 to record $78 million Non-taxpaying companies receive record $53 million in ‘refund’ checks IOWA CITY, Iowa (March 12, 2020) — Iowa businesses large and small made record use of the state’s generous research tax Read more

The only “historic” note in the latest school-aid deal is the defiance of Iowa’s tradition of commitment to education.

Governor's tax plan gives voters much less of what they wanted — and extras they did not seek

“Iowa will never cut its way to prosperity, but the Governor persists in this contradiction of reality.”

In 30 years, the share of public higher-education financed by tuition has doubled in Iowa. Meanwhile, total state support for higher education fell 22 percent.

Do these highly profitable companies need state subsidies? Would Iowa legislators choose these subsidies over funding for education, human services and public safety?

While sales tax has remained important to state and local revenues, tax policy in Iowa has not kept up with changes in the economy, particularly with online and remote sales. The Governor’s tax plan would modernize that element — but other changes could ease Iowa’s overall regressive tax structure.

The proposed expansion of Iowa’s 529 program adds administrative complexity, reduces revenue for other needs, and disproportionately benefits high-income families.

The plan includes some desirable reforms that need not have come at the expense of essential public services that inevitably will have to be cut in the face of revenue losses. It also omits reforms that could enhance Iowa tax fairness. 

Neither fairness nor adequate funding of state services appear to be the focus of either bill, but let's give serious analysis a chance.