Iowa currently lacks a clear process to prevent a state government shutdown if a budget is not passed on time, creating uncertainty for taxpayers and essential services. A budget-continuation, or “no shutdown,” rule would ensure government operations continue by temporarily extending the prior year’s budget during impasses or emergencies. Adopting such a rule would promote stability, limit politic...
Conservative budgeting is the foundation of fiscal conservatism and the key to sustaining Iowa’s tax reforms. Spending growth has accelerated in recent budgets, even as economic uncertainty and revenue pressures increase. As lawmakers craft the FY 2027 budget, spending discipline will be essential to protecting Iowa’s fiscal stability and future tax relief. As economist Art Laffer has observed, “g...
Property tax reform is shaping up to be the defining issue of Iowa’s upcoming legislative session, with bipartisan attention and growing public pressure. Rising property taxes are driven by unchecked local government spending, not by isolated flaws in the tax system. A firm 2% cap on property tax growth is essential to delivering real, lasting relief, and must be central to any serious reform effo...
In this episode of ITR Live, Chris Hagenow and John Hendrickson return as the Iowa Legislature prepares to convene, with property taxes once again emerging as the central issue of the upcoming session. The conversation reflects growing bipartisan recognition that unchecked local government spending is driving tax increases and that meaningful reform must focus on structural restraint rather than s...
Iowa has transformed its income tax system from one of the nation’s worst to a flat 3.8% rate, cutting the top rate by nearly 60% and dramatically improving the state’s tax competitiveness. This reform was made possible by conservative budgeting and spending discipline, which allowed Iowa to lower rates responsibly while maintaining strong reserves and fiscal stability. As other states continue to...
Rising property taxes are straining Iowa households and undermining affordability, highlighting the need for reform that protects both taxpayers’ budgets and their fundamental property rights. Property rights are a core American principle, rooted in the Founding era and affirmed by thinkers like James Otis and Barry Goldwater, who warned that excessive taxation erodes individual freedom as much as...
This post was originally published on this site. Theodore Christianson argued that unchecked government spending inevitably fuels higher taxes, bureaucracy, and reduced economic freedom, warning that government growth tends to feed on itself regardless of good intentions. He believed meaningful fiscal restraint required structural “brakes,” not rhetoric, including consolidated agencies...
Iowa’s 3.8% flat tax is the culmination of a decade-long reform effort, beginning in 2018, made possible by conservative budgeting, spending restraint, and structural tax reforms, not a one-time tax cut or temporary policy experiment. A flat tax is fairer, simpler, and more transparent than a progressive system, treating taxpayers equally under a single rate while preserving deductions and credits...
In this episode of ITR Live, Chris Hagenow and John Hendrickson provide straight talk on Iowa’s economic conditions, cutting through political messaging to focus on what the numbers actually show. With the latest Revenue Estimating Conference in the books, the hosts explain why Iowa’s fiscal position remains strong—but why that strength should not be misinterpreted as a green light for higher spen...