Tax Cuts or Increased Gov't Spending

If legislators don't lock in rate cuts this year, they are telling taxpayers that increasing government spending is more important than letting Iowans keep more money in their own pockets.
The issue before legislators is simple: cut taxes or increase government spending. The Governor's income tax reform bill was introduced in both chambers this week. As written, the bill would let Iowans keep more money in their bank accounts in several ways.  

How likely is it that Iowa’s tax climate will be improved this year?

There seems to be momentum behind this idea in two important spots. This is the second year in a row that the Governor has introduced a bill to ensure lower tax rates. Last year, the Senate Ways and Means Committee advanced legislation to ensure lower rates, and new Ways and Means Chairman Dan Dawson has said the Senate will work on similar legislation again this year. 

Over the next few weeks, ITR will provide a more detailed analysis, but here are the main aspects of the Governor’s proposal:
  • Removes revenue triggers from 2018's tax reform bill and locks in an income tax cut from 8.53% to 6.5% 
  • Reduces individual income brackets from nine to four 
  • Simplifies state tax code by increasing conformity with federal tax law  
  • Ensures Payroll Protection Program (PPP) dollars and other qualifying COVID-19 grants are not taxed 
The 2020 election results offered a clear mandate from voters: they like the direction the Governor and legislative leaders are taking this state and want to see more conservative policies advanced. 

So, if this reform doesn't pass this year, some legislators are telling Iowans that increasing government spending is more important than letting Iowans keep more money in their own pockets. 

Click the button below for a simple way to send a message to your legislators. 
Contact Your Legislators Today!

Iowans are Speaking Up!

Letter to the Editor: Eliminate Iowa's Death Tax
The government takes too much of your money and time. That is why ITR works for:
  • Lower taxes
  • Less spending
  • Fewer regulations
We encourage Iowans to make their voices heard. Politicians will continue to spend more money if taxpayers sit back and quietly pay our tax bills. 

Barb Kniff from Pella spoke up this week with a letter to the editor about Iowa's inheritance tax. In her letter, Barb said:
"The inheritance tax really comes into focus with small business planning. In my personal business planning, the inheritance tax means some difficult decisions must be made to ensure my business can outlive me—decisions that I would not necessarily choose to make in a different tax environment."
ITR encourages you to speak up too. Send a letter to the editor of your local paper or contact your elected officials. 

In case you missed last week's newsletter, your next property tax increase is being determined right now. Click here to read it and speak up. 

Capitol Update: Legislative Issue Status

Read about ITR's solutions to these problems in our 2021 Issue Guide
New or Updated Bills This Week:
Governor's Tax Reform Bill
HSB 174 - Introduced; Assigned to a subcommittee
SSB 1145 - Introduced; Assigned to a subcommittee

Deductibility of Federal PPP Loan Forgiveness
SF 196 - Introduced; Assigned to a subcommittee

Public Assistance Program Eligibility Verification
SSB 1125 - Introduced; Assigned to a subcommittee

Additional Property Tax and Income Surtax - ITR Opposes
SF 258 (SF 117) - Passed full committee

Taxpayer-Funded Lobbyist Transparency
HF 346 - Introduced

Regulatory Reform
HF 254 - Introduced

City & County Local Entertainment Surcharge - ITR Opposes
HF 213 - Introduced; Assigned to a subcommittee

Open Records Request Costs
SF 218 - Introduced; Assigned to a subcommittee

Occupational Licensing Reform
SSB 1046 (Review and sunset of professional licenses) Passed out of subcommittee
HF 132 (Remote continuing education credits) Passed out of subcommittee
SF 163 (Continuing education requirement deadline)  Passed out of subcommittee


No Change This Week:
Donor Privacy
SSB 1036 - Passed Senate subcommittee 
HF 309 (HSB 28) - Passed out of House Judiciary Committee

Eliminate Iowa's Inheritance Tax
SSB 1026 (formerly SF110/HF48) Passed Senate subcommittee / Assigned to House subcommittee
SF 16 Assigned to a subcommittee;
Fiscal Note

Links of Interest

Americans for Tax Reform: Hey Iowa, phase out your income tax and eliminate the inheritance tax. 
Dave Roederer, Iowa's chief budget officer for the last decade, announces retirement - DM Register

ITR congratulates Dave Roederer on his well-earned retirement. Dave was a champion for Iowa taxpayers, and a thoughtful steward of their hard-earned tax dollars. Iowa is a better place for his service. 
Michael Bousselot, ex-Branstad chief of staff, named Department of Management director - DM Register

ITR looks forward to working with incoming Director Michael Bousselot. We are confident that the administration of Governor Reynolds will continue to advocate for Iowa taxpayers.

Recent ITR Newsletters

  • They are making your next property tax bill right now
  • Capital update: legislative issue status
  • Unacceptable use of property taxes by Des Moines Public Schools
  • Smaller government - it's not complicated
  • Legislative issue updates
  • Bernie's mittens
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ITR works for lower taxes, less spending,
and fewer regulations so politicians
get out of your pocket and off your back.

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