Common Good Iowa: Killing Democracy by Superminority
ITEP Work in ActionIowa’s tax structure has long favored the wealthiest Iowans and corporations, and tax cuts passed in 2022 are making inequities worse. The average millionaire will see a cut of $62,000 a year. In the middle, Iowans earning $40,000 to $60,000 will see an average cut of $300, or about $6 a week. Most with incomes under $40,000 will see no cut at all.
The eventual consequences will be cuts to services that make Iowa a good place to live, work and raise a family: schools, health, human services, public safety, child care and environmental protection. By FY 2028 official estimates put the cost at $1.9 billion a year, or over 20 percent of the general fund for FY 2022.
Senate and House proposals to eliminate the income tax — 43% of the Governor’s proposed General Fund budget and 50% of it before the new cuts passed — are alive right now.