Your dollars don't stretch as far as they did even one year ago. Inflation is at its highest level in 40 years, with the biggest increases in basic necessities of food, electricity, and shelter. The cost of everyday items keeps increasing, creating tough decisions in family budgets.
This is why we sound like a broken record when it comes to this year's tax reform plans: the stakes are high.
The state's tax code takes too much money from Iowans. Current estimates indicate that the state will collect nearly $1 billion more in taxes for the current fiscal year than budgeted. Furthermore, over $2 billion will be in the Taxpayer Relief Fund, a special account that collects overpaid tax dollars. Therefore, Iowa needs to cut taxes.
Governor Reynolds and Republican legislative leaders have prioritized tax reform. We appreciate that they listen to what ITR and our members have to say. This week, the governor shared an ITR Foundation article on Facebook and Twitter:
Three Plans to Cut Taxes:
The governor, Senate Republicans, and House Republicans have released three separate reform bills. All three plans significantly lower the individual income tax rate and include a complete retirement income exemption. The governor and Senate also include corporate income tax rate reductions.
Watch: A YouTube link to watch the hearing will be provided on the legislative website after 4:00 p.m. Monday.
What ITR Thinks:
An income tax rate of no more than four percent will be a tremendous win for taxpayers. Iowans will have more money in their pockets, which will have a meaningful impact on family budgets.
ITR registered in support of all three tax reform plans.
They Are Wrong
Local elected officials have an endless pile of excuses for why they can't cut property taxes. It's time to erase one of them from existence.
Communities across Iowa have received large sums of federal funds from the American Rescue Plan Act (ARPA).
But, we have heard local leaders mistakenly claim they cannot use ARPA funds to cut property taxes. This is wrong; they can.
An ARPA provision attempted to stop state governments from using relief funds for tax cuts. Even though that issue is still being settled in the courts- in fact, a federal judge blocked the controversial provision last fall- there has NEVER been a similar constraint on local governments.
Analysis from both sides of the political spectrum, the National League of Cities and the Tax Foundation, have stated that there is no prohibition on local governments cutting taxes.
Therefore, city and county officials should keep property taxpayers top of mind as they make budget decisions with this influx of federal money.
No opportunity to cut taxes should be taken off the table because of a misunderstanding or misstatement of the law.
Remember, increased local government spending is why you have a larger property tax bill every year.
So, visit ITRLocal.org to see how property taxes have grown in your community. Then, start a conversation with the people who make your bill.
Seats are filling up fast!
Fourth Annual Tax Day Lunch
With Keynote Speakers:
Governor Kim Reynolds
and Congresswoman Ashley Hinson
Tuesday, February 22, 2022
11:30 a.m. to 1:30 p.m.
Doors Open at 11:15 a.m.
Buffet Lunch begins at 11:30 a.m.
Program starts at Noon
Des Moines Heritage Center
120 E 5th St, Des Moines, Iowa
(Google Maps link)
ITR’s team at the Capitol is tracking the following bills of interest:
House Tax Reform HF 2317 - Passed House Ways and Means Committee February 8
Senate Tax Reform SF 2206 - Passed Senate Ways and Means Committee February 7
Certificate of Need NEW: SF 2255 - Passed Human Resources Committee February 10
Unemployment Insurance HF 2279 Passed House Labor Committee February 4 SSB 3093 Senate Commerce Subcommittee scheduled for February 8
Supermajority Requirement to Raise Income and Sales Tax
Constitutional Amendment SSB 3064 - Assigned to Senate Ways and Means Subcommittee
Home-Based Business Protections HF 2005 - Passed Local Government Subcommittee February 10
Public Assistance Program Integrity
HSB 503 - Returned to Committee without recommendation HSB 507 - Passed Human Resources Subcommittee January 26 HSB 508 - Passed Human Resources Subcommittee January 26 HSB 504 - Passed Human Resources Subcommittee January 13
TIF Reform HF 2082 - Passed House Education Committee January 20;
Passed House Ways and Means Subcommittee February 2
School Choice NEW: HSB 672 Referred to House Education Committee SSB 3080 - Passed Senate Education Subcommittee February 2 HF 2223 - Assigned to House Education Committee
Governor's Tax Reform HSB 551 - Assigned to House Ways and Means Subcommittee SSB 3044 - Assigned to Senate Ways and Means Committee
