The Iowa Legislature is currently debating tax reform, but it is crucial that the conversation focuses on actual issues rather than made-up ones. Business tax credits in the state are growing at a faster pace than other forms of state spending and are significant contributors to budget shortfalls. Many of these credits have been questioned …
Iowa’s Research Activities Credit (RAC) has come under scrutiny for providing a tax subsidy that reimburses companies for research activities. According to an annual report by the Department of Revenue, the RAC program provided $49.1 million in 2016 to large companies that do not pay state income tax. Of the claims made by companies, 82% …
Big Companies Erase Taxes and Make Millions in State Subsidy Read More »
Tax cuts can have positive and negative effects. While they can provide relief to taxpayers and stimulate economic growth, they can also lead to revenue shortfalls, underfunding of essential services and programs, and an increasing wealth gap. In Iowa, the consequences of a significant commercial property tax cut two years ago have become a reality. …
Costly Business Property Tax Cut is Hurting Family, Kids’ Services Read More »
For years, Iowa has been known for having low business taxes. However, politicians often use this reputation to justify further tax cuts. In March 2014, a report by the Iowa Fiscal Partnership showed that the claim that Iowa’s business taxes are competitive is false. Several factors influence businesses’ decisions to locate or expand within a …
The state of Iowa’s legislative session in 2014 is facing a difficult budget dilemma due to previous decisions made in 2013. At the start of FY2013, lawmakers had nearly a billion-dollar surplus, which they utilized to provide moderate gains for the middle class. However, the same session also saw the enactment of one of the …
According to a report from the US Department of Agriculture on family food insecurity, a larger proportion of Iowa households struggled to put food on the table on average in 2010-12 compared to the previous decade. The share of households with food insecurity rose from 9.1% to 12.6% from 2000-02 to 2010-12, making Iowa one …
The state of Iowa is grappling with a difficult situation in adequately funding education and other critical priorities due to projections of meager revenue growth for the next fiscal year. The problem is largely due to the state’s long-standing revenue shortfall, which has resulted from a preference for tax cuts over the past two decades. …
Here a Tax Break, There a Tax Break, Everywhere a Tax Break Read More »
Iowa’s public K-12 schools are currently facing a number of funding challenges, with potential vouchers being a major concern that could divert funds to private schools. One of the key indicators of funding trends in the state is Supplemental State Aid (SSA), a metric that describes the percentage increase in the per-pupil cost limit in …
Iowa’s Increasingly Shaky Foundation of School Funding Read More »
The Iowa General Assembly is currently deliberating on expanding the state’s Earned Income Tax Credit (EITC). The EITC is a tax credit offered to less privileged incomes of individuals or couples. It serves as an incentive for work and helps alleviate the burden of payroll and income taxes. The Cedar Rapids Gazette editorial board supports …
As the COVID-19 pandemic continues to wreak havoc on the United States, different states have taken various measures to prevent a surge of cases that would overwhelm their healthcare systems. Most states have issued shelter-in-place orders or have implemented partial restrictions on travel, business operations, and social activities. These measures are based on epidemiological data …
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