Common Good Iowa: New Income Tax Cuts – a Recipe for Disaster and InequityITEP Work in Action
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 fully phased in will cost hundreds of millions of dollars,1 lawmakers are proposing a new round of income tax cuts, up to the full elimination of the state income tax. More income tax cuts would likely make Iowa’s already unfair tax system even more unfair. Making large new cuts to the income tax, let alone eliminating it, would force draconian budget cuts or even elimination of entire service areas.