Following a path of fiscal conservatism is never easy. Numerous interests are calling for either new or an expansion of existing taxpayer funding for programs. Policymakers are confronted with difficult decisions in crafting a budget and providing for the priorities of government, but at the same time trying to be good stewards of taxpayer dollars. The pressure for policymakers to […]
Governor Kim Reynolds has made growing Iowa’s economy a priority. To accomplish this goal, she is working to ensure that Iowa has a competitive tax climate. As a result of following fiscal conservatism of prudent spending and lowering tax rates, Iowa was able to weather the economic impact of the COVID-19 pandemic. Iowa’s fiscal house is in order with full […]
In a recent interview with Tax Education Foundation of Iowa, Dr. Ernie Goss, Professor of Economics at Creighton University, discussed current issues and economic trends for both Iowa and the nation. Goss noted that Iowa’s economy “is still about three or four percent below pre-pandemic levels” but is on the road to recovery. Although both Iowa’s and the national economy […]
In a recent interview with Tax Education Foundation of Iowa, Dr. Ernie Goss, Professor of Economics at Creighton University, discussed current issues and economic trends for both Iowa and the nation. Goss noted that Iowa’s economy “is still about three or four percent below pre-pandemic levels” but is on the road to recovery. Although both Iowa’s and the national economy […]
President Joe Biden and Democrats in Congress are celebrating the recent passage of the American Rescue Plan Act (ARP), which is a $1.9 trillion package aimed at providing COVID-19 relief. The $1.9 trillion “stimulus” is in addition to $4 trillion in previous spending directed towards pandemic relief. The American Rescue Plan will not only add to the escalating $28 trillion […]
Des Moines is rightly excited about plans to build multiple new sports facilities. But Iowa taxpayers ought to be concerned about the city’s request for $57 million in state subsidies to underwrite real estate developers’ profits. Cronyism of this sort has been a consistent problem across America, but there’s hope on the horizon. States have been locked in a perpetual […]
President Joe Biden and Democrats in Congress are pushing for a $1.9 trillion COVID-19 relief package. Congress has already approved $4 trillion in pandemic relief and stimulus measures and billions of that money has yet to be spent. Congress is also considering a $6.1 trillion budget and the $28 trillion national debt continues to escalate. Federal policymakers should avoid another […]
In 2018, Governor Kim Reynolds and the legislature passed pro-growth tax reform that lowered income tax rates and broadened the sales tax base. Reducing tax rates, along with practicing fiscally responsible spending policies, is making Iowa more competitive and economically strong. However, the annual report, Rich States, Poor States, describes how states across America continue to advance policies that […]
On January 11, 2021, the Iowa legislature is scheduled to reconvene. Besides crafting a budget, the legislature will also be confronted with the challenge of creating policies to help stimulate the economic recovery from COVID-19. Governor Kim Reynolds and the Republicans in the legislature have been following a policy of fiscal conservatism by keeping spending low and reducing tax rates. […]
Tax rates matter. They determine how much income an individual or business must pay to the government. For every dollar taken away by taxes, it is one less dollar an individual, family, or business has to save, spend, or invest. Tax rates also play a big role in how competitive a state economy is in relation to other states. Higher […]
By James Broughel Like most of the country, Iowa is facing two problems. First, the coronavirus is threatening the lives of its residents. Second, the response to the virus, in terms of lockdowns and social distancing, has been a threat to the state’s economy. The balancing act is figuring out how to keep the virus in check without destroying […]
Foreword This summer COVID-19 continues to be an albatross on the economy. Although Iowa’s economy is open, social distancing policies remain. Iowa’s unemployment rate fell from 10 percent in May to 8 percent in June. Even with Iowa’s unemployment rate falling, fear of the virus is preventing people from resuming regular consumer activities. In addition, many small businesses are […]
Recently TEF Iowa polled Iowans to get their view on some key public policy issues. In this guide you will find not only how Iowans think about these issues, but also public policy solutions that align with the interest of Iowans. TEF Iowa has developed this guide as a resource to provide legislative candidates additional information on some of the […]
Iowa’s unemployment rate dropped from 8 percent in June to 6.6 percent in July. A year ago the unemployment rate was just 2.7 percent . The national unemployment rate for July stands at 10.2 percent. Iowa has the 7th lowest unemployment rate in the nation, and regionally only Nebraska (4.8 percent) and South Dakota (6.3 percent) have lower rates. Iowa’s […]
This summer COVID-19 continues to be an albatross on the economy. Although Iowa’s economy is open, social distancing policies remain. Iowa’s unemployment rate fell from 10 percent in May to 8 percent in June. Even with Iowa’s unemployment rate falling, fear of the virus is preventing people from resuming regular activities. In addition, many small businesses are fighting to […]
Can you think of any area of your life that is not directly impacted by government? Government, whether at the federal, state, or local level, has grown considerably overtime. The escalating $26 trillion national debt is the most symbolic description of the growth of government. As more demands are placed on all levels of government, it creates a problem. As […]
The coronavirus (COVID-19) is having an impact on economic growth in Iowa. The Bureau of Economic Analysis (BEA) released Gross Domestic Product (GDP) by state from the fourth quarter of 2019 to the first quarter of 2020, which demonstrates some of the economic impact of COVID-19. During this time Iowa’s economy declined by -3.5 percent. Other than Nebraska and South […]
Iowa’s economy has begun the process of reopening with continued limitations due to social distancing. Nevertheless, economic uncertainties remain. How will businesses cope with operating at limited capacity? Will Iowa consumers feel safe to fully reintegrating into the economy or will a fear of a “second wave” keep people away? How will lost economic activity impact state and local tax […]
Iowa’s economy is reopening, but the economic impact of COVID-19 (coronavirus) is still uncertain. Iowa’s April unemployment rate was 10.2 percent because of business closures resulting from social distancing policies used to mitigate the virus. The economic impact of COVID-19 is still a fluid situation. One of the uncertainties is the impact of the virus on state and local revenues. […]
Executive Summary As of May 20, 2020, the CDC calculates that COVID-19 has generated 99,498 U.S. deaths and 449 Iowa casualties. Per 1,000,000 in population, this represents 303 deaths for the nation, and a much lower 149 for Iowa. Due to COVID-19, the U.S. economy contracted by 4.8% in Q1, 2020, and Iowa’s economy experienced: Highest level […]
The COVID-19 pandemic is precipitating an unprecedented economic downturn, and small businesses are likely to bear the brunt of it. Mandatory shutdowns and social distancing are forcing many small businesses to shut their doors, leaving millions of people out of work and driving down sales. Even when governments begin lifting social distancing restrictions, the residual effects of unemployment and disrupted […]
Do you know that the income taxes you pay to the state of Iowa makes up the majority of the General Fund budget? Iowa’s General Fund is supported not just by income taxes, but also sales and a variety of other taxes, fees, and revenue sources. In addition, the budget is supported by taxes paid to the federal government. In […]
Iowa’s economy is in a recession marked by high unemployment, not seen since the Great Depression of the 1930s. Iowa’s economic crisis is a result of the coronavirus (COVID-19), which has forced an economic shutdown of the state. Low commodity prices are also having a detrimental impact on the farming industry in our state. Ernie Goss, PhD, who serves as […]
David Kennedy, prominent historian and Stanford University professor, in an interview with Governing discussed the COVID-19 (coronavirus) emergency in relation to the Great Depression. In that interview he stated, “[President] Calvin Coolidge said that if the federal government went out of business, the average person wouldn’t notice for six months, except for the post office. Now, the federal government is twice the size of the states all put together.” […]
The United States is confronted by an unprecedented crisis with the coronavirus (COVID-19) pandemic. From an economic standpoint, the COVID-19 crisis is being compared to the Great Depression with the growing army of unemployed Americans and the possible historic loss in state and local tax revenues. In March, Iowa along with other states, closed the economy except for essential businesses […]