ITR President Chris Ingstad speaks during Governor Kim Reynolds's press conference on February 12, 2020.
Iowa is in competition with the rest of the country, and especially our Midwestern neighbors, to attract and retain people and businesses. Taxes matter and the best way to improve Iowa’s tax code is to cut income tax rates. The legislation the Governor has proposed cuts income taxes in both the short term and the long term.
Governor Kim Reynolds introduced the Invest in Iowa Act at her weekly press conference. ITR President Chris Ingstad was asked to speak about the comprehensive tax reform plan. Here are his remarks:
"Iowans for Tax Relief has been the voice of the taxpayer for over 40 years. We represent 30,000 members, and we are here today to support the Governor's Invest in Iowa Act.
Iowa is in competition with the rest of the country, and especially our Midwestern neighbors, to attract and retain people and businesses. Taxes matter and the best way to improve Iowa’s tax code is to cut income tax rates. The legislation the Governor has proposed cuts income taxes in both the short term and the long term.
While the Governor’s proposal cuts taxes, it also ensures spending priorities will still be protected; we just don't run the risk of that future cut being delayed unnecessarily.
This bill also helps ease the property tax burden by substantially lowering the cap on the mental health levy. Certainly that relief could be consumed by other property tax rate increases, valuation increases, or even emergency levies. But lowering a levy is lowering a levy, and we support that improvement. Property tax relief helps homeowners and renters.
Since the IWILL amendment for natural resources was passed in 2010, there have been at least eight different bills proposed that would have raised the sales tax while making no reductions elsewhere. Knowing that the possibility of the IWILL sales tax increase will exist until it passes at some point in the future, we prefer to see any increase done thoughtfully and in a manner that reduces the overall tax burden, while improving the tax code in Iowa.
Simply put, this comprehensive reform plan cuts taxes. Yes, it includes a sales tax increase, but it also decreases two other taxes in the process, ensuring Iowans will keep more of their hard-earned income.
And this proposal specifically considers low to middle-income families with the creation of new sales tax exemptions for diapers and feminine products, as well as expanding options for child care credits.
There is no doubt this legislature and this Governor have led the charge to put Iowa taxpayers first. It’s our hope that tax reform measures will receive thoughtful review by the House and Senate again this session and that we’ll move forward on real relief for Iowa taxpayers."
Tax rates matter. As ITR said at the time, the 2018 tax reform was a great step toward rate reduction, sales tax modernization, and conformity with federal tax code, but there is much work left to be done.
Contact the Governor and your legislators from our easy-to-use VoterVoice page and let them know what you think.