Tax Reform Survey Results

  1. What is your opinion about Iowa’s recent tax reform?

    ItemResponse
    It is exactly what Iowa needs
    19%
    It is a good start, but we need more tax relief65%
    It was not needed and will hurt Iowa’s economy5%
    I am uncertain or need more information19%
  2. Future individual income tax cuts are dependent on revenue goals, known as triggers. The tax rates will not be lowered further until state revenue meets those trigger amounts. If enough growth is achieved (approximately 4% growth each year for four years in a row) the top personal rate will be lowered to 6.5%. Should that 4% growth requirement be increased, decreased, or left alone?

    ItemResponses
    Increased2%
    Decreased51%
    Left alone36%
    Not sure/Don't know
    10%

  3. Do you support or oppose how this reform bill uses revenue triggers to connect future tax changes to revenue growth?

    ItemResponses
    Support48%
    Oppose34%
    Not sure/Don't know17%
  4. How optimistic are you that Iowa will have 4 percent annual growth for four consecutive years to trigger the additional tax rate cuts in 2023?

    ItemResponses
    Very optimistic7%
    Somewhat optimistic35%
    Doubtful47%
    Not a chance14%
  5. A major part of the tax reform plan includes modernizing Iowa’s sales and use tax. Do you support or oppose collecting sales tax on digital downloads, services, and subscriptions that were not previously taxed?

    ItemResponses
    Support38%
    Oppose51%
    Not sure/Don't know10%
  6. If state revenue grows at least 4% annually for four years, Iowa’s top individual income tax rate would be reduced to 6.5% and federal deductibility will be eliminated. Do you think a 6.5% income tax rate is low enough to offset the removal of federal deductibility?

    ItemResponses
    Yes, federal deductibility should be eliminated no matter what13%
    Yes, 6.5% is sufficient12%
    No, the rate needs to be lower than 6.5%29%
    No, federal deductibility should be kept no matter what35%
    Not sure/Don’t know19%
  7. In 2020 the tax reform plan lowers Iowa’s corporate income tax rate of 12 % to 9.8%. Do you believe that Iowa’s corporate tax rate needs to be lowered further?

    ItemResponses
    A 9.8% tax rate is sufficient31%
    The tax rates need to be lower than 9.8%45%
    The corporate income tax should be slowly phased out28%
  8. The tax reform bill will review Iowa’s numerous tax credits starting in 2019. How should the legislature handle the issue of tax credits?

    ItemResponses
    The legislature should continue to support Iowa’s tax credits because they help with economic development
    and provide a social safety net
    17%
    The legislature should repeal tax credits that are not generating a return on investment
    38%
    The legislature should repeal all tax credits and leave rate at 9.8%4%
    The legislature should repeal all credits and lower rates further44%
  9. It is estimated this reform will let Iowa taxpayers will keep over $1 billion in their own bank accounts by 2022. Dollars kept by taxpayers will not be spent by state government. In your opinion this will: (mark all that apply)

    ItemResponses
    Create economic growth and more jobs72%
    Increase household income60%
    Slow the rate of growth in state spending46%
    Hurt education, healthcare, and low-income Iowans7%
    Cost Iowans more in the long run from a loss of vital services9%
    Cause more state budget shortfalls11%
    Not sure/Don’t know8%
  10. How should the legislature proceed with future tax reform?

    ItemResponses
    The recent tax reform is sufficient, and no further action is needed4%
    The legislature should work to continue to lower tax rates utilizing a lower revenue trigger of 2 or 3 percent58%
    The legislature should wait a year and then reevaluate Iowa’s economic condition before proceeding with
    further tax relief
    38%
  11. Comments:

    Comments:
    • I dream with a tax free economy, but, I understand that changes like that in a society addicted to government services will take time to accomplish. First the people has to be educated enough to know the difference. After educating the people, then big changes can be made before encounter resistance. Patience is key.
    • You ought to eliminate taxes all together. There used to be none. The government got greedy.
    • As important is to cut spending. Audit and monitor spending. Cinch the belts on un-necessaries versus any cuts of vital services.
    • We should be a no tax state. Reduce government.
    • IA needs ways to help rural communities to maintain and grow. We are seeing other rural based states that have eliminated income tax thrive economically, which in turns adds more revenue to the state treasury as business, property tax and income from sales tax increases. IA is strategically positioned in the Mid-West to be a major hub of activity. The indexing to growth looks sadly like political parlor tricks to the ill-informed voter. The Republicans will never get positive media coverage in anything they do, so why not be bold for once and really put a dynamic plan in place.
    • It is great to have state tax reform.
    • The Working Middle Class is the ones needing tax breaks.
    • State tax should be eliminated, we are already taxed to death at all levels! If you must have a tax, raise the sales tax, those that purchase will pay tax, people too poor to buy things will not be taxed.
    • We need to get rid of the pensions given the unionized government "workers." These pensions will keep Iowa, as they have other states, impoverished. Unfortunately, so many in our legislators have spouses who are getting state pensions. It has become a racket. Candidates for state office should be made to release that information.
    • Need to not punish people who work other state and live in Iowa due job availability Iowa pay More in Iowa than Nebraska received in taxes.
    • I don’t think Iowa will achieve 4 percent growth for four consecutive years. This, we have not realized a tax reduction.
    • I feel that the present tax reform package allows politicians to say they have reduced our income taxes; but, still allow state government to grow at a faster rate than the state population or citizen's personal income.
    • Education & health care (inc. mental health) will continue to be an issue so will need some consideration for cost savings AND investment.
    • Iowa tax structure is a numbers game played by government and Iowans will always loose. Flat tax, CUT bloated Iowa government. Iowa government is a bloated bureaucracy that feeds itself first and last. Too much welfare and goodie programs for the kids.
    • Middle income Iowans need the tax relief more than the top.
    • I'm fine with tax relief. Iowa's rate is pretty high compared to other states. I think more money in the hands of Iowans that have the skill to invest in Iowa business is a no brainer. That will create a demand for jobs, jobs will eliminate the need to state assistance. That should mean less tax dollars will be needed to help those that truly need our help. As long as the tax cuts produce benefits to us, I am all for them. Abuse should not be tolerated. Bottom line in any tax changes should be to allow individuals, small business owners the opportunity to grow for the benefit of us all.
    • Iowa should end the income tax for all taxpayers. I am okay with increasing sales taxes and some user fees somewhat to offset the imposition of income taxes. I like the FAIR tax model.
    • Too many loop holes for various entities, especially farmers! Sales tax on bottled water & junk food; Too many tax-exempt organizations; All organizations should pay for fire & police protection, including churches.
    • None of this really helps senior citizens. I suggest making retirement income tax free or freezing property taxes for seniors over 65 years of age.
    • We should eliminate tax credits, income tax, and property taxes and implement a tax which is constitutional which would be a sales tax on new items only. You are only fiddling with an unconstitutional tax structure. Most younger people today are not educated on the constitution, so are not even aware of the fact that so many of our laws are unconstitutional, especially our tax laws. We need to do away with much of our bureaucracy and move from service to manufacturing. The corporate tax is the only one which is constitutional, as they are not a sentient being covered under the constitution.
    • Most of the public does not understand that the tax rate for 2019 is only reduced from 8.98% to 8.52%, not much of an improvement at all! I am doubtful given the current issue with trade tariffs that Iowa's revenue will grow by 4% for four consecutive years. Yet, Republicans keep talking about how they are lowering our income tax to 6.5%; pulling the wool over our eyes. The estimated $1 billion going back to Iowa taxpayers by 2022 is pure "pie in the sky" forecasting because this is an election year.
    • Close all loopholes. Reduce the size of state government and entitlements, stop tax incentives for huge corporations, stop taxing retirement incomes.
    • The Tax cuts are a good thing, especially at state funded universities where they a forced to reduce over stuffed budgets, however they should be making cuts to Administrators salaries and NOT cutting services.....Property taxes NEED to be addressed!!
    • It's not about revenue (ie taxes).... we need to drain the swamp and cut radically the high cost (and spending) of govt
    • The corporate tax rate is especially burdensome for companies with a high percentage of Iowa sales. These companies deserve more relief than those with low Iowa sales since their effective rate is much lower than the nominal rate.
    • Iowa needs a constitutional amendment which limits the growth of government expenditures.
    • The corporate income tax is an excise tax and is always ultimately paid by the consumer.
    • I very strongly oppose the elimination of federal deductibility on my state taxes. Double taxation is simply wrong, and unfair to working Iowans.
    • Iowa should couple with Federal and then decide on a tax rate. Should be no or very few Federal/Iowa tax computation differences
    • With the change in taxation, I paid more this year that ever before - with almost the same salary as the year before. I lost a total of $400.00 on a combined income of $72000.
    • Some retirees move from Iowa to states with no or lower taxes on retirement. Some Iowa cities are proactive on growth whereas other cites could care less (i.e. no property taxes for x years for new home construction). So I guess Iowa is non friendly for retirees and some Iowa cities are too greedy to focus on growth.
    • Keep up the good work.
    • Iowa needs a real Whistle Blowers Law to protect state employees who report waste, fraud and malfeasance from retribution or being fired for doing so. The present law only applies to OSHA violations. This needs bi partisan support. Otherwise Iowa will have a new tax. The Iowa Corruption Tax. Need more info? I’ll be happy to show you a present example.
    • Too many state employees. All overpaid. What is the quit rate?

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