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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 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.

Iowa’s decision to participate in the Medicaid expansion has not only provided health insurance coverage to tens of thousands of low-wage workers, but also provided an enormous boost to the state’s economy.

We start off the legislative session not knowing where the funding will come from to maintain the services we have, with legislative leadership locked into an agenda to drive down those services, and no real sense of how the Governor will protect long-held priorities​ of Iowans.

The tax bill puts the rhetoric of politicians and economic charlatans to the test — a test of trickle-down economics. It has never worked and will fail again.

When you look beyond the early years of this plan, you see that low- and middle-income Iowans are whacked by this plan in 2027.

In Iowa, the House tax plan offers the wealthiest 1 percent an average tax break 143 times the size of the break at the middle — while threatening services that help middle-class taxpayers and support the safety net.

Iowans need to keep their eye on the ball, and not through rose-colored glasses. We need to be aware of our challenges ahead, the very real cuts to education we have seen, and the prospect of cuts in Medicaid and access to health care.