Common Good Iowa is urging the Iowa congressional delegation to make children and families the priority in an end-of-year spending package — despite a special-interest push for new tax breaks for profitable corporations.
“Governor Reynolds might have started with a ‘thank you’ to Americans tonight. Federal pandemic funds carried Iowa through a deep, sharp recession, and set our state leaders up to meet real needs in our state. They could have acted on our state’s neighbors-helping-neighbors values that have made Iowans proud for generations.
“Instead she touted a nearly $2 billion tax cut that undermines Iowa’s values by tilting the system even more in favor of the top 1 percent and wealthy corporations, at great cost to ordinary Iowans. If the governor thinks this policy choice is a national model, she is right. But it is a cautionary one.
Iowa's foundation for strong and sustainable public services took a big hit as the Senate and House passed a massive tax cut bill, discarding the lessons of Kansas' failure with similar tax cuts, rushing an unprecedented tax cut for the wealthy from the back rooms to the floor of both chambers, with big promises that will prove to be hollow. A statement from Common Good Iowa.
The state of Iowa gave away nearly $44 million in 2021 to companies that paid no state income tax, to do research most would do anyway. Iowa's generous Research Activities Credit needs reforms to make sure taxpayers are getting what they are paying for.
Governor Reynolds’ plan for a flat income tax would intensify the unfairness and inequity already evident in Iowa’s tax system. Eliminating taxation of all retirement income also would be a bigger benefit at higher incomes. Iowa cannot afford new tax cuts and live up to our values and aspirations as a state — and there is no reason to think these plans would bring more people to Iowa.
The projected revenue increase for FY2023 remains very small -- clearly not enough room for tax cuts when just keeping up with costs will be a challenge.
Common Good Iowa News — Labor Day 2021 finds Iowa's job market imbalanced since the COVID-19 pandemic hit in early 2020, without a clear policy response in place to correct it.
More than $41.2 million of the total went in checks to companies that paid no income tax last year.