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Taxes

This is how it starts

posted on January 11, 2019

LEGISLATIVE SESSION 

ITR’s 2019 Legislative Issue Guide

The legislative session starts Monday, January 14. After listening to Iowans across the state in person and through surveys, ITR has identified five key policy initiatives that can help all Iowans. These include:

  • Addressing the ever-increasing burden of property taxes
  • Evaluating Iowa’s dependence on federal funding
  • Reigning in Iowa’s high personal and corporate tax rates
  • Examining Iowa’s Medicaid program to curb fraud and abuse
  • Strengthening Iowa’s spending limit

ITR is the taxpayers’ watchdog, and while special interests fight for their piece of Iowa’s budget, we will continue to represent the source of that budget: the taxpayers.

COMPARING IOWA 

The Rankings Have Been Released

It stings to see your favorite college team ranked near the bottom of the polls. It is even worse for your state to be ranked among the worst in terms of tax climate.

Iowa ranks near the bottom, sandwiched between California and Illinois according to Tax Education Foundation of Iowa.

They recently ranked the individual income, corporate income, property, and sales taxes of all 50 states and Washington, D.C.

Iowa’s rankings:

  • Individual Income Tax –  9th highest
  • Corporate Income Tax – The highest
  • Property Tax – 13th highest
  • Sales Tax – 26th highest

Overall, Iowa has the nation’s 4th highest tax burden!


Fortunately, solutions found in the ITR 2019 Legislative Issue Guide can improve Iowa’s future rankings.

TAX HISTORY QUIZ 

What year did Iowa first impose income and sales taxes?

Extra credit:
What is the reason these taxes were imposed?
(Answers located at bottom of this page)

 ACROSS IOWA 

Property tax reform a key issue for GOP legislative leaders​ – AP​​​​​​

Iowa GOP lawmakers urge caution on state spending – Cedar Rapids Gazette

After income tax cut, Iowa GOP eyes property taxes – QC Times

Bid to raise Iowa sales tax for natural resources has ‘momentum’, legislative leaders say – Des Moines Register

Under limited conditions, GOP could raise state sales tax in 2019 – Radio Iowa

Iowa DOT proposes extra charges for electric vehicles – Cedar Rapids Gazette

QUIZ ANSWERS

 

1934 – Individual income taxes ranged from 1.0% to 5.0% over five brackets. Corporate income tax was a flat rate of 2%. The sales tax rate was 2%.

Bonus:
Iowa income and sales taxes were created in 1934 as property tax relief measures.

Source: Iowa Department of Revenue

 

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It’s easier for politicians to yield to noisy special interest groups when the taxpayer keeps quietly paying the bills.