Iowa has the fifth highest individual and the highest corporate tax rates in the country.
To reduce the sticker shock of high rates, sacred cows have been added to Iowa’s tax code in the form of tax credits. We wouldn’t need so many tax credits, if legislators reduced the tax rates.
Politicians from both parties compare government budgets to family budgets. This needs to be more than just talk. Spend less money than you take in! The state should have priority-based budgeting to determine funding for core government services, while rooting out waste. We all know there is certainly wasteful spending!
How can we fix this problem? Kansas cut tax rates, but failed to control spending. However, North Carolina had a budget shortfall about six years ago. They lowered tax rates and addressed spending at the same time. The result was substantial economic growth. Iowa’s budget situation is extremely tight. We need an economic upswing like North Carolina. The best formula to achieve this is prioritizing spending and reducing the tax burden.
We need to unlock the economic opportunity for hard-working taxpayers by lowering tax rates and control spending. Doing this would increase family incomes and business profits that ultimately lead to more government revenue.
The government does not pay for tax cuts; it pays for spending. There is zero cost to letting families keep more of their money.
Barbara Hovland, Mason City