Iowa’s Road to Fiscal Responsibility

Think back to 2010. Democrats held the state government trifecta. Politically, Iowa’s policy positions were quickly lining up with Illinois.

However, Iowa had real hope and change. In November 2010, Iowans ended the tax-and-spend trifecta by electing Governor Terry Branstad, Lt. Governor Kim Reynolds, and a conservative majority in the Iowa House. Then, in 2016, the control of the Iowa Senate finally flipped.

Immediately, fiscally conservative leaders began enacting free-market, pro-growth reforms.

• 2018 – Iowa enacts a major tax reform bill, lowering income tax rates and modernizing the sales tax.
• 2021 – The revenue triggers to reduce income tax rates included in the 2018 reform were removed.
• 2022 – Iowa’s conservative leadership put Iowa on the path to a 3.9 percent flat income tax.
• 2023 – Lawmakers took the first step in addressing out-of-control property taxes.

Iowa is setting the gold standard that other states want to follow. However, we must not become complacent. Our state’s tax code must continue to improve, and we must secure our victories for future generations.

ITR 2024 Legislative Issues:

ITR will have a strong presence at the Capitol throughout the legislative session to ensure the taxpayer’s voice is heard daily.

Download a PDF of ITR’s issue guide.