All reports by date

Iowa stacks taxes against middle, low-income Iowans
Study: New state tax law reinforces long-term trend of regressive taxes
Iowa summary sheet (PDF)

IOWA CITY, Iowa (Oct. 17, 2018) — Iowa taxes its middle- and low-income families more as a share Read more

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. 

Real tax reform would eliminate wasteful spending on tax breaks, transform a regressive system into one that fairly reflects ability to pay, and assure a stable revenues to fund education and other critical services.

“Too often, we see public officials relying on these rankings and the policy prescriptions they promote, when in fact the rankings have no predictive value for economic growth,” said Fisher.

Iowa lawmakers’ budget dilemma this year is largely self-inflicted — revenue shortfalls a product of legislators’ penchant for tax cuts over the past 20 years.

Tax cuts have consequences. In the case of the massive commercial property tax cut enacted two years ago, those consequences have become all too real.

In Iowa as in most states, middle- and low-income people nationwide pay substantially more of their income in state and local taxes than wealthy individuals and families.

Whether we are looking at the entire range of taxes that fall on businesses or just the corporate income tax, the fact is that business taxes in Iowa are low.

Iowans cannot afford new raids on the General Fund when many public services have not been restored to pre-recession levels.

Iowa lawmakers must recognize the long-term impact of tax cuts on spending choices. Past choices will force future legislatures to lower investments on critical services on which economic growth depends.