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The most significant accomplishment HF2460 offers is better accountability and transparency. In terms of changing the actual practice of TIF, however, the bill is a disappointment.
Read our Iowa Fiscal Partnership backgrounder or download 2-page PDF 5/17/12 LATEST!
Why slapdash changes carrying a "reform" label are not enough.
Read our Iowa Fiscal Partnership backgrounder or download 2-page PDF 3/29/12
Abuse of tax-increment financing by cities is a statewide problem.
Read IFP Summary of TIF situation in Iowa
Polk County and Johnson County provide case studies of the need for reform.
Read Polk County report (8-page PDF) 3/15/12
Read news release or 2-page PDF
Read Johnson County report (15-page PDF) or executive summary (2-page PDF) 11/21/11
Also see report appendix (maps) or news release 11/21/11
View Johnson County forum on TIF reform, or view slides from Peter Fisher's presentation 1/4/12
“TIF has been allowed to degenerate to the point that many cities view a TIF area as a perpetual cash cow to finance a wide range of city operations that have nothing to do with economic development.” — IFP's Peter Fisher
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While Governor Branstad worried at the end of the legislative session about stopping a ban on lead shot, the real missed target of 2012 was lawmakers' failure to secure an improvement in the Earned Income Tax Credit. Over 200,000 Iowa families will pay for it.
Read IFP statement 5/14/12
Read IFP policy brief (4-pg PDF) with district-by-district impacts of U.S. EITC, Iowa EITC and proposed improvement 3/29/12
Also see IFP backgrounder (2-pg PDF) with map at right and district impacts 4/2/12
Find other recent IFP reports on the EITC here.
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Iowa’s approach to economic development has been badly skewed in favor of expensive subsidies aimed at short-term job gains instead of long-term investments in our economy.
Read IFP policy brief by Lily French or download 5-pg PDF 4/19/12
Read IFP news release or download 2-pg PDF 4/19/12
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Every day, Iowans show their support for a healthy and prosperous state as they invest in Iowa through taxes. But Tax Day offers an appropriate time to reflect on a few key points about the taxes we pay.
Read IFP backgrounder 1-pg PDF 4/13/12
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| In Education Funding, for Tuition Aid... |
The combination of increased tuition and decreased state tuition grants and scholarships threatens to put higher education out of reach for many Iowans.
Read policy brief or download 6-page PDF 4/12/12 NEW!
Read news release or download 2-page PDF 4/12/12
For Community Colleges...
Iowa's community colleges can count less on state support than they did 10 years ago, shifting costs to students and parents also trying to make ends meet.
Read policy brief or download 4-page PDF 3/22/12
Read news release 3/22/12
For the Regents Institutions...
Likewise, state budget cuts have hammered Iowa's Regents institutions, forcing up tuition and fees.
Read policy brief or download 5-page PDF 3/8/12
Read news release 3/8/12
And Also in Water-Quality Funding ...
Iowa lawmakers are $5 million behind water-quality funding trends of the last decade, despite greater needs for water protection and public willingness to fund it.
Read Iowa Policy Project paper (9-page PDF) 3/1/12
Read news release 3/1/12
In General, Serious Questions About Iowa Priorities
Budget-making season is upon us — even though it doesn't seem that long ago that Iowa lawmakers last passed a budget after the marathon 2011 session. Context of Iowa budget trends of recent years might be helpful as decisions are made.
Read Andrew Cannon's policy brief (12-page PDF) 2/7/12
Read news release or download 2-page PDF 2/7/12
The test of this legislative session will be how lawmakers fill in the blanks left by the Governor's address. That means reform of tax-increment financing, and improvements to working-family tax policy and preschool in Iowa.
Read IFP Statement 1/10/12
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Three large corporations received over $31 million in Iowa research subsidies without paying any state income tax, part of nearly $45 million paid by the state in 2011 for unused research tax credits.
Read IFP news release 2/10/12
Read IFP backgrounder or download 2-pg PDF 2/21/12
Read Dept of Revenue report (2-page PDF) 2/10/12
"The RAC began as a way to support start-up companies to do research in Iowa, but it has become a costly program that benefits very large companies with little scrutiny."
— Charles Bruner, Iowa Fiscal Partnership.
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The test of this legislative session will be how lawmakers fill in the blanks left by the Governor's address. That means reform of tax-increment financing, and improvements to working-family tax policy and preschool in Iowa.
Read IFP Statement 1/10/12
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One provision of the new health reform law is a side-of-the-box-style summary of what's inside each plan — consumer friendly information to aid comparison-shopping for insurance.
Read Issue Snapshot or download 1-page PDF 8/23/11 LATEST!
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A family of four making $30,000 in Iowa would have received a state income tax reduction of about $97 through enactment of the EITC increase, if Governor Branstad had not vetoed the measure. While this is not a lot to some families, it makes a difference for families who are working and trying to raise their children on what is only a little above the poverty level.
Read statement 7/28/11
During the 2011 legislative session, lawmakers frequently spoke of the need for an austere budget. Despite such calls, a number of tax reductions were enacted at the same time there were significant reductions in many programs.
Read fact sheet 8/4/11
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A little-noticed provision of Senate File 533 offers a potentially vast expansion of Iowa state spending on big businesses through the Targeted Jobs Withholding Tax Credit, at the same time the Legislature has acknowledged the original credit itself needs to be reviewed.
Read policy brief or download two-page PDF 6/29/11
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In a statement for IFP, Charles Bruner notes the partnership fully agrees with a national coalition that to get the United States on a sustainable budget course, “history shows it can and should be done without driving more Americans into poverty or causing undue pain and hardship.”
Read statement or download one-page PDF 6/29/11
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As Iowa House and Senate negotiators discuss plans to roll back the rate at which commercial and industrial property taxes are assessed, they should recognize how a poorly drawn proposal can prevent city and county elected officials from fulfilling their responsibilities to their citizens. That is the challenge with limitations created in legislation that has passed the Iowa House.
Read backgrounder or download three-page PDF 6/14/11
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Even as the Iowa House prepares to pass an “omnibus” bill on the budget and many nonbudgetary policy items, gridlock at the State Capitol has Iowa hurtling on a course toward a government shutdown. What would a shutdown mean?
Read backgrounder or download two-page PDF 6/7/11
Read statement 6/17/11
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House-passed legislation would reduce commercial property tax assessments by 40 percent over five years — an unnecessary cut in our already low-tax state. Changes of this magnitude deserve — and Iowans should demand — far more study than they have received.
Read IFP public hearing testimony or download one-page PDF 6/7/11
Read policy brief or download two-page PDF 5/3/11
Read Peter Fisher's guest opinion in the Iowa City Press-Citizen. 5/12/11
We need a balanced approach to budgeting that assures fiscal prudence and adequate revenues to meet our citizens’ needs. This is no time to be cutting taxes. We cannot afford it.
Read IFP statement 4/26/11
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Under a proposed block grant, no longer would SNAP — formerly Food Stamps — meet needs as they arise in an economic downturn.
Read backgrounder or download 2-page PDF 5/25/11
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A Medicaid block grant offers the same promise to cut back services for Iowa’s neediest citizens.
Read backgrounder or download 2-page PDF 4/8/11
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Our tax dollars work for us. They represent a shared commitment to investing in Iowa’s present and future prosperity. This reality is all too often neglected in discussions about “Tax Day.”
Read backgrounder or download 2-page PDF. 4/13/11
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Tax-increment financing with state sales-tax dollars poses many problems. All exist with the proposed sales-tax TIF for Cedar Rapids — as do better alternatives.
Read policy brief or download 4-page PDF 3/30/11
"The flood-control projects in Cedar Rapids can be financed without establishing another dangerous precedent for tax-increment financing that could evolve into a permanent drain on the state general fund ...."
— Peter Fisher, Iowa Fiscal Partnership.
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Tax breaks being promoted in the Iowa General Assembly help the wealthiest individuals and corporations, at the same time lawmakers are calling for unnecessary budget cuts.
Read policy brief or download 6-page PDF 3/22/11
Read news release 3/22/11
"Iowa needs the balanced approach to budgeting that has long been missing."
— Charles Bruner, Iowa Fiscal Partnership.
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The health reform law passed by Congress and signed by the President a year ago contains measures to help small businesses and their employees get affordable health insurance coverage.
See our 1-page issue snapshot (PDF). 3/21/11 NEW!
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Iowans continue to pay less than the national average for state and local public services, according to the most recent information from the Census of Governments.
Read news release or download backgrounder 3-page PDF 3/17/11
"For those who believe taxes are important in business and individual decisions on where to locate, these findings should be an important tool to promote economic development in our state" — Peter Fisher.
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One provision of Senate File 209 provides for “bonus depreciation,” which permits businesses to delay paying a share of current income taxes. In some cases they may avoid those taxes altogether. There is no economic rationale for Iowa to adopt this break, for several reasons.
Read IFP backgrounder or download 1-page PDF 3/1/11 NEW!
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Middleman or mouse click? While proposals in the Statehouse would require Iowans to find insurance through a broker, finding it online at their convenience is what the federal health reform law intends.
See our 2-page backgrounder (PDF). 3/3/11 NEW!
What is an exchange? See our 1-page backgrounder (PDF). 2/17/11
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The Affordable Care Act contains provisions that have the potential to benefit hundreds of thousands of Iowans. Health Benefits Exchanges are the central feature of the act.
See our Policy Brief or download 7-page PDF. 12/21/10
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House File 194 provides a 20 percent cut in Iowa’s individual income tax rates. The issue is not just that the state of Iowa, recovering from a recession and major cuts to education and other public services, cannot afford such a tax cut and sustain essential public services — though that issue is very real. The problem also is that such a tax cut is very much misdirected, taking Iowa tax policy further down the path of helping the wealthiest the most — a trend building since the mid-1990s.
Read IFP policy brief or download 2-page PDF 2/16/11
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Whether one focuses only on the corporate income tax, or the whole range of taxes falling on business, Iowa’s state and local taxes are well below average, and have been for some time.
Read backgrounder or download 2-page PDF 2/9/11
Proponents of business tax breaks claim that taxes are a significant factor in the location choices of businesses, and that a state can tax-cut its way to economic growth and generate tax revenue in the process. Several decades of research on the relation between state taxes and growth confirm that such claims are vastly overblown and sometimes completely misleading.
Read report (11-page PDF) 2/9/11
"Business tax breaks turn out to be an expensive and inefficient
way to attempt to stimulate a state economy." — Peter Fisher, in "Corporate Taxes and State Economic Growth"
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At a time when unemployment in Iowa neared 7 percent and Iowans coped with steep cuts in critical state and local services, three corporations received over $30 million in corporate subsidy checks from the Iowa Treasury. They are among 133 corporations that paid no state income tax but still received checks from the state.
Read IFP statement or download 1-page PDF 2/11/11
Read IFP backgrounder or download 2-page PDF 2/12/11
Read Dept of Revenue report (2-page PDF) 2/11/11
"When we are asking Iowa government to be efficient and frugal, and to not promote special interests, how can this be justified? It cannot." — Charles Bruner, in IFP Statement: "Research Credit Showers Benefits on Non-Taxpaying Companies"
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Iowa’s budget challenges are quite manageable and do not require the cuts to essential services that the Governor has proposed. At the same time, the Governor’s budget shows the budget gaps being suggested in the Iowa House are heavily overstated.
Read statement 1/27/11
While 2011-12 will be a tight budget year and Iowa still has to work to eliminate its long-term structural budget deficit, additional cuts to essential public services are not needed to balance the 2011-12 budget. Iowa still needs a balanced approach that includes attention to its revenue drain.
Read backgrounder or download 2-page PDF 1/18/11
Read public hearing testimony from Peter Fisher or download 2-page PDF 1/18/11
Read public hearing testimony from Victor Elias or download 2-page PDF 1/18/11
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Since their creation, two tax credits, the EITC and the CTC, have been improved to reach more working families. Most recently, the 2009 Recovery Act improved both credits. If these improvements expire at the end of the year, fewer dollars would pass through to the lowest-earning workers and there would be greater need for public assistance for their families.
See our Backgrounder or download 2-page PDF. 11/22/10
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How could it be in the nation's breadbasket? The USDA finds 11.5 percent of Iowa households are food insecure.
See our News release or download 2-page PDF. 11/16/10
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Iowans value their schools, their parks, law enforcement, and water, sewer and transportation infrastructure. They see the benefit of supporting economic security for farmers and working families. Yet, recent years have brought unprecedented threats to the publicly supported foundations of Iowa's economy and culture, through misleading rhetoric and lost resources. What do the facts show? Iowans might be surprised.
Read policy brief or download 6-page PDF 10/6/10
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Thursday, Sept. 23, marked a milestone day for health reform in Iowa and the rest of the nation. Much of the new health reform law takes effect in 2014, but some provisions have taken effect that will help thousands of Iowans.
Read policy brief or download 4-page PDF 9/22/10
Read news release.
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The recession hit home for Iowans in 2009, as incomes dropped, poverty rose, and health coverage remained a persistent problem. Depending on the survey, from 1 in 9 to 1 in 11 Iowans face a shortage of health coverage.
Read news release 9/28/10
Separate Census survey 2-page PDF 9/16/10
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Increasing numbers of children and their families in every county in Iowa are benefiting from new public health insurance initiatives.
Read backgrounder or download 2-page PDF 7/27/10
Read news release. View map.
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Over 50,000 Iowa small businesses and their employees could get or keep health insurance now with opportunities in the new health reform law.
Read policy brief or download 3-page PDF 7/22/10
News release 2-page PDF
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Without an extension of unemployment benefits for long-term unemployed, Iowans could see a delayed economic recovery, while workers long unemployed through no fault of their own need help.
Read backgrounder 1-page PDF 6/25/10
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By maintaining the Child Tax Credit eligibility rules modified in the Recovery Act, Congress could help thousands of working Iowans support their families and make ends meet.
Read backgrounder or 2-page PDF 6/14/10
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At the same time the federal economic recovery package
is boosting income and the number of jobs for Iowa workers, it is improving energy-savings
opportunities for Iowa families who cannot otherwise afford them.
Policy Brief PDF (7 pages) 5/20/10
News Release HTML PDF (2 pages)
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Assuring children's health coverage is an area where Iowa has shown leadership. Will budget choices uphold that legacy?
ARRA-Child Health Policy Brief 3-pg PDF 3/7/10
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Federal recovery dollars for Iowa’s unemployment insurance system, food assistance and Medicaid have boosted Iowa economic activity in both jobs and income, with continuing benefits into 2010.
ARRA-Unemployment Insurance Policy Brief 5-pg PDF News Release HTML or 2-pg PDF 2/25/10
ARRA-Food Assistance Policy Brief 9-pg PDF News Release HTML or 2-pg PDF 2/17/10
ARRA-Medicaid Policy brief 5-pg PDF 11/12/09 News release 2-pg PDF 11/12/09
Visit our Recovery Act: Iowa page for these reports and more.
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Proposed tax-credit reform legislation in the Iowa Legislature falls well short of its stated goals for better accountability and savings for Iowa taxpayers.
Backgrounder PDF (3 pages) Statement HTML 3/23/10
News Release PDF (2 pages) 3/17/10
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Iowa policy choices could encourage a stronger economy, and address the long-term need to assure critical public services are strong when they are most needed.
Backgrounder HTML PDF (3 pages) 3/17/10
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We need to be smarter about economic development spending. When we are cutting state services, we should not leave tax credits and subsidies for economic development running on autopilot.
Film credit: statement from IFP's Peter Fisher PDF (1 page) 3/10/10
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A costly idea — letting cities give away state sales tax dollars to developers — is back. The winners are few: owners of prime property that would be developed anyway. The losers: Iowa taxpayers.
4-page report PDF 3/1/10
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While some interests are trying to stop Iowa's moves toward transparency in tax credits, a new peek into taxpayer subsidies illustrates the problems of accountability. The numbers are artificially low, however, because of a one-year loophole in the new law.
IFP Statement 2-pg PDF2/15/10
IFP Backgrounder HTML 1-pg PDF2/9/10
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Can government assistance be a determining factor in business decisions in ways that provide an overall benefit to the state? Key considerations for use of tax credits and tax expenditures.
Policy Brief 5-pg PDF or HTML2/4/10
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How much do various business subsidies actually return a benefit to Iowa taxpayers? What to consider — and what not — to evaluate "rate of return."
Policy Brief 6-pg PDF 1/27/10
Backgrounder 2-pg PDF or HTML 1/27/10
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Governor Culver's Condition of the State message backs proposals by his Tax Credit Review Panel to put Iowa on a track to accountable and transparent budgeting.
IFP Statement HTML 1-pg PDF 1/12/10
IFP Statement on Tax Credit Review Panel HTML 1-pg PDF 1/8/10
News Release 2-pg PDF 12/14/09
See report released by Governor's Office PDF (121 pg).
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Iowa voters by wide margins want a balanced approach to resolving Iowa’s budget crisis, with nearly six in 10 favoring some use of taxes and fees in the mix. Voters also heavily favor personal income-tax reform and more disclosure about business tax credits.
Voter Views Part 1 4-pg PDF 12/2/09
Voter Views Part 2 4-pg PDF 12/8/09
News Release 2-pg PDF 12/2/09
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Moderate- and low-income Iowans pay more of their income in state and local taxes than the rich do, according to a new report that prompted fresh calls for Iowa income-tax reform.
Data Sheet 1-pg PDF 11/18/09
News Release 2-pg PDF 11/18/09
See the Institute on Taxation and Economic Policy's Full 50-State Report.
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Increased Medicaid spending has an economic benefit for the state of Iowa far greater than the federal government’s initial investment — about $1.68 for each dollar invested.
Policy brief 5-pg PDF 11/12/09
News release 2-pg PDF 11/12/09
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The Governor is right in these difficult economic times to attempt to protect public services and avoid unnecessary layoffs that will only steepen our climb out of the recession.
Full statement 1-pg PDF 10/28/09
Full statement following decision on 10 percent cut. 1-pg PDF 10/8/09
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Iowa’s revenue problem does require immediate action, but that action must be strategic.
Everything needs to be on the table as the Governor and General Assembly address the state's short- and long-term budget challenges.
Full statement 1-pg PDF 10/7/09
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| Iowa's Film Tax Credit — Issues Behind the Glitz |
Fiscal policy issues raised by the controversy with Iowa's film credit program should be of as much concern as the very serious management issues that have brought on a state investigation. All issues surrounding the credit should be addressed before lawmakers decide whether to reinstate any form of a film development incentive.
5-page report PDF 10/8/09
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We just don’t know enough about what state tax money is being used for — a problem with more than the film credit. Iowa must not miss the overarching issues raised by the film-credit issues.
Full statement 1-pg PDF 10/5/09
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A critical problem with Iowa's film tax credit boondoggle is a lack of transparency. Further, this is coming at a time when our state leaders are anticipating budget cuts.
Full statement 1-pg PDF 9/21/09
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Iowa's health-insurance shortage is worse in the latter part of this decade than it was at the start, and median income growth is too small to note — and this is before we see the numbers for 2009.
News release 2-pg PDF 9/22/09
News release 2-pg PDF 9/10/09
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Deteriorating revenues demand a fresh review of Iowa’s fiscal situation so policy makers can make budget decisions with the best information available.
Backgrounder HTML or 3-pg PDF 7/31/09
News release 1-pg PDF
See the Des Moines Register editorial 8/5/09
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Lost in the political discussion about tax reform during the 2009 session of the Iowa General Assembly was a factual examination of who would be affected by various proposals, how tax rates would change in exchange for ending federal deductibility, and the long-term implications of the choices. IFP reports sort out the important facts for Iowans.
View reports (April 2009)
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A three-page backgrounder makes the case: The sales tax TIF law that passed in the last days of the 2008 legislative session should be repealed. What were lawmakers thinking?
Backgrounder (3-page PDF) (3/30/09)
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A two-page fact sheet uses graphs to show Iowa state spending has been in line with general economic performance in the state, but that spending in one area — tax credits — has grown much faster than general fund spending.
Backgrounder (2-page PDF) (1/23/09)
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How do natural disasters, like the 2008 Iowa floods, affect children? What policies and actions can government take to mitigate these impacts?
Backgrounder (PDF) (1/25/09)
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Understanding local income surtaxes, in practice and potential for Iowa communities. Backgrounder (5-page PDF) (1/22/09) News release (PDF) (1/26/09)
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Watch a Des Moines Register interview with one of IFP's experts on Iowa budget and tax policy, Peter Fisher of the Iowa Policy Project, for good perspectives on Iowa's current fiscal crisis and how to deal with it. View the video. (1/22/09)
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Governor Culver's Condition of the State message asked lawmakers to assure "everything's on the table" to balance the state budget and find savings — while upholding the promise of investments in a green economy, education and health care. Cutting wasteful spending through the tax code in secret subsidies to big companies is one thing to review. News release (PDF). (1/13/09)
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HOW DID WE GET TO THIS SITUATION IN 2009? A BUDGET CRISIS PRIMER: Iowa's budget situation has changed markedly since last July; what has brought Iowa to the questions we face now? Backgrounder (7-page PDF). (1/16/09)
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Iowa policy makers should address the state's budget crunch with choices that do not worsen the recession but do assure scrutiny on seldom-reviewed spending on tax breaks. Open letter (PDF). (1/02/09)
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Newly revised state revenue estimates are pointing not just to the national recession hitting Iowa, but to holes in Iowa's revenue structure. News release (PDF). (12/12/08)
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Iowa lawmakers are almost certain to face immediate and severe budget challenges when they reconvene in January. Closing loopholes and stopping wasteful spending on tax breaks for big corporations offer an opportunity to shore up revenues to maintain critical services. Briefing paper (3-pg PDF). News release (PDF). (12/10/08)
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Health-care and education investments are at risk for Iowa as the state's population becomes proportionately older. Full report (28-pg PDF). Executive summary (HTML or 4-pg PDF). News release (PDF). (12/01/08)
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Iowa's state and local tax system favors the highest-income families in the state — a fairness problem compounded by the net effect of two decades of policy changes. News release, backgrounder.
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| The number of uninsured Iowans grew by one-third in seven years, while Iowans' median income showed slight improvement in 2007 and poverty remained high. News release. (8/26/08)
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| Farm buildings and farmland need to be assessed and taxed separately as a first step toward a more understandable, fair and modern system of assessing Iowa farm property. Full report, four-page executive summary, news release. (7/17/08)
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| A proposal in Congress for a property tax credit would deny help to Iowans facing the most difficult financial challenges from floods, tornadoes and mortgage foreclosures. IFP Perspective one-pager.(6/24/08)
See the Des Moines Register editorial. (7/3/08)
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| Iowa spent about $300 million in enterprise zone (EZ) subsidies from 2003-07 in a “monster” program needing a major overhaul. Report, executive summary and news release. (4/21/08)
See the Des Moines Register and Radio Iowa stories. |
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Household-name companies have been getting big checks at the expense of Iowa households. Report, news release and graphs. (4/16/08)
Iowa's Human Needs Advocates see a problem: secret tax breaks for big corporations — $32.8 million worth in 2005 — but delays in improving the EITC for low-income working families. News release from HNA, and two-page IFP backgrounder. (4/8/08)
Learn more about secret checks and the Research Activities Credit, and about closing corporate tax loopholes.
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| Switching the School Infrastructure Local Option (SILO) sales tax to a statewide penny sales tax holds mixed implications for low-income Iowans and tax equity. Report and backgrounder. (4/4/08)
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• Different incomes, different impacts for Iowans. Backgrounder. (3/31/08)
• Falling short for families with children. Backgrounder. (3/28/08)
• Benefiting the wealthy. One example: Iowa's special treatment of capital gains income. Backgrounder. (3/6/08)
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| Access to child-care is an issue of "making work pay," just like the minimum wage and low-income tax credits — and updating Food Stamp benefits can reflect that. Read the backgrounder. |
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| Undocumented immigrant families pay less in state taxes than families at similar incomes in Iowa, but they contribute over $40 million to state coffers and they receive fewer services. A new report finds that discussions focusing only on costs of undocumented immigrants can miss a big piece of the fiscal equation: the taxes immigrants pay, often without services coming to them. Read the full report or the four-page executive summary or the news release. (Oct. 25, 2007) |
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