ITEP Work in Action
Common Good Iowa: Both Governor’s, Senate Plans Worsen Tax Inequalities
February 12, 2024
Iowans have traditionally valued expanding opportunity, caring for neighbors and a strong sense of fair play. Tax-cut proposals at the Iowa Statehouse from Governor Kim Reynolds and legislative leaders turn these Iowa values upside down. They would drastically restrict revenue needed to fund critical services such as education, health care, public safety and environmental quality. The Senate bill, SSB 3141, would set out to fully eliminate the income tax, which until recently has funded roughly half of the state budget. By targeting benefits to the wealthiest Iowans, the plans would throw an already inequitable tax system further out of balance.
Common Good Iowa: Tax Cuts: What’s At Stake for Iowans
January 4, 2024
The income tax is a way Iowans come together to lay strong foundations that create opportunity and help people thrive. Governor Reynolds and legislative leaders want to eliminate Iowa’s personal income tax — a virtual promise to decimate the services that make Iowa a better place to live, work and raise a family. Read more.
Common Good Iowa: New Income Tax Cuts – a Recipe for Disaster and Inequity
February 10, 2022
Iowa lawmakers have repeatedly cut taxes over the last three decades in ways that provide the greatest benefits to the highest-income taxpayers while ratcheting down investments that historically made the state attractive to raise a family or do business — including public schools and public health. Now, within months of passing tax cuts that when […]
Iowa Fiscal Partnership: Tax Inequity: Iowa’s Continuing Story
October 17, 2018
Iowa taxes its middle- and low-income families more as a share of income than it does wealthy families, a long-term trend worsened by the 2018 tax overhaul. The latest “Who Pays” report by the Washington-based Institute on Taxation and Economic Policy (ITEP), again shows the effect of sales taxes and property taxes on lower-income households tilts Iowa’s overall tax system so the poorest pay the highest percentage in taxes.
Iowa Fiscal Partnership: Tax Plan Facts vs. Spin
May 5, 2018
As Iowa lawmakers consider the agreed-upon tax plan developed by Republican leadership and Governor Reynolds, sharp differences are clear from earlier proposals by the Governor and the House Ways and Means Committee.
Iowa Fiscal Partnership: IFP’s Tax Policy Kit
April 29, 2018
IFP's Tax Policy Kit offers resources for the public, advocates and policy makers who want to better understand the stakes — and sort away the spin — on state tax debates.
Iowa Fiscal Partnership: Passing Through a Special Break for Wealthiest Filers
March 19, 2018
The tax bill that recently passed the Iowa Senate included a provision from the recent federal tax cut bill that provides preferential tax treatment for certain kinds of business income earned mostly by the highest income taxpayers. The “Qualified Business Income Deduction” (QBID) provides a 20 percent exemption of that income from the personal income tax.
Iowa Fiscal Partnership: Passing through a special break
March 19, 2018
The tax bill that recently passed the Iowa Senate included a provision from the recent federal tax cut bill that provides preferential tax treatment for certain kinds of business income earned mostly by the highest income taxpayers. The “Qualified Business Income Deduction” (QBID) provides a 20 percent exemption of that income from the personal income […]
Iowa Fiscal Partnership: Governor’s Plan Sets Stage For Service Cuts
March 16, 2018
Iowa’s General Assembly opened with promises from legislative leadership and the Governor for tax reform. We noted key opportunities to assure a fairer and sustainable system in a brief report last fall, “Introduction to 2018: What should be part of tax reform? And what should not?”[i] These options remain; some are gaining attention — such as the elimination of federal deductibility and the closing of sales tax loopholes — and some are not.
Iowa Fiscal Partnership: Governor’s Tax Cut Plan Sets Stage For Service Cuts
March 7, 2018
Governor Kim Reynolds’ tax proposal trades massive cuts in public services for small savings for lower-income taxpayers, larger savings for high-income taxpayers and few meaningful strides toward fairness in a system that already treats the poor poorly and raises too little revenue to avoid mid-year cuts.
Iowa Fiscal Partnership: Understanding Iowa Taxes
January 10, 2017
The Iowa Fiscal Partnership is pleased to distribute a new report by the Institute on Taxation and Economic Policy: The ITEP Guide to Fair State and Local Taxes. We hope you will find this useful in understanding and evaluating state and local tax policy. Many of the general tax principles and issues presented in the […]
Iowa Policy Project: $8.9 million revenue boost with immigration reform
April 6, 2016
“A new report projects a 24 percent increase in state and local tax revenues from undocumented immigrants in Iowa if they were granted permanent legal residence.” Read full report
Iowa Fiscal Partnership: Balanced approach on gas tax
March 6, 2015
Raising Iowa’s tax on gasoline and diesel fuel by 10 cents per gallon would go a long way toward financing needed street and highway repairs and improvements. Critical needs most recently were estimated at $215 million annually, and the 10 cents is projected to raise that amount by fiscal year 2018. Read the full report […]
Iowa Policy Project: Immigrants in Iowa
July 7, 2014
Undocumented immigrants pay an estimated $64 million in state and local taxes, according to a new Iowa Policy Project report. The authors suggest immigration reform that expands work authorization or access to citizenship would increase the already significant contribution to Iowa by all immigrants — documented or not. Read the Full Report
Iowa Fiscal Partnership: Putting Fairness First: Questions for Financing State and Local Government in Iowa
January 15, 2013
As state legislators close out the 2008 legislative session and confront the tasks of maintaining commitments and investing in Iowa’s future, they will have to deal with a basic question: How is the budget gap to be financed? Each financing decision has a different set of consequences for Iowans at different income levels. This means […]
Iowa Policy Project: Undocumented Immigrants in Iowa: Estimated Tax Contributions and Fiscal Impact
January 14, 2013
This report examines undocumented immigrants in Iowa and their state tax contributions. Undocumented immigration remains a controversial issue in the United States, especially as the failure of federal immigration legislation has contributed to what the National Conference of State Legislatures (NCSL) describes as “an unprecedented level of activity” in state legislative bodies as states seek […]
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