NFIB, the leading small business association in Iowa, reacted to Gov. Kim Reynolds Condition of the State speech today by applauding her plans to address key small business priorities in 2020. This morning, the Governor mentioned most of NFIB’s 2020 legislative priorities including occupational licensing reform, which will help address Iowa’s workforce shortages, and continued income tax reductions – a direct investment in small businesses and their employees.
Matt Everson, NFIB’s state director in Iowa who heads up more than 10,000 small business owners, thanked the Governor for her continued investment in small business.
“Iowa is the 2nd most licensed state in the country, we applaud the Governor for addressing this issue. The state’s current rigorous and burdensome licensing system leads to financial and time-consuming barriers for people who want to move, live, work, and contribute to Iowa’s economy.”
Iowa’s broken occupational licensing system has resulted in millions of dollars of lost revenue and tens of thousands of lost jobs. According to the Institute for Justice, Iowa has lost 48,000 jobs and $290 million in revenue because of burdensome occupational licensing regimes. Iowa is at a competitive disadvantage and NFIB applauds the Governor’s efforts to reform the system. Reciprocity, review of licenses and licensing boards, and fee waiver policies must be included in any reform bills.
“Occupational licensing reform and continued income tax reductions will help all small businesses in Iowa and the nearly 650,000 employees who work for a small business in Iowa to continue to thrive and prosper. We applaud the Governor’s leadership on these key small business issues and look forward to working with her and the legislature to push these policies forward in 2020.”
While Everson agrees with the Governor’s assessment that opportunity lives in Iowa, he also warns lawmakers not to become complacent. Two years ago, NFIB supported the Governor’s successful efforts which lowered income taxes by the largest amount in history. However, in order to retain and recruit a new generation of Iowa small business owners, Everson supports the Governor’s move to cut income taxes even further – to at least 5.5% by 2023.
“It is essential for the long-term economic health of Iowa that our elected officials continue their work to reduce income tax rates. Iowa has one of the highest income-tax rates in the country and it greatly affects our small business owners and their employees.”
