Rick Morain is the former publisher and owner of the Jefferson Herald, for which he writes a regular column.
Republicans, who control the Iowa House, the Iowa Senate, and the Iowa governorship, make no secret of their intent to entirely eliminate the state’s income tax. It probably won’t happen this coming year or the next, but the plan is now on a glide path. If the Iowa GOP remains in power for the rest of the present decade, we should probably count on the demise of the Iowa income tax by the end of the 2020s or before.
Even though those rates have already started to drop by dint of Iowa legislative actions in the past few years, the state income tax still makes up a huge chunk of the state’s budget. In fiscal year 2022-23 the figure was 46.8 percent—nearly half of state budget revenues. That percentage is now no doubt somewhat lower due to legislation that has dropped individual state income tax rates to a flat tax figure of 3.8 percent next year, but Iowa still depends on billions of state income tax dollars each year for its budget.
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