Iowa’s tax code isn’t perfect, but important steps have been taken in recent years to make it better. Iowa’s budget ended FY 2020 with a $305 million surplus and the state’s cash reserves are strong.
We don’t have to look too far to see an alternative view. Bureaucrats in Illinois want to increase taxes in an attempt to fix their broken budget.
Illinois voters will vote November 3 on whether to approve or reject changes to the state’s tax structure. The changes are not good. Currently, Illinois has a 4.5 percent flat income tax. Tax hungry big spenders want to change to a progressive income tax with no limits to the rate increases.
Not everyone supports Illinois’s proposed tax changes — bankers, business owners, and business organizations say it will hurt job creation and the economy.
To paraphrase our friends at Goldwater Institute, at a time when over 100,000 small businesses have permanently closed across the nation and Americans are looking to emerge from the economic devastation of COVID-19, tax increases on job creators are the last thing we need.
The moment Iowans cease trying to improve our tax code, the door will be left open for wild and expensive ideas from Illinois, California, and New Jersey to take root.