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December 2013 Policy Study, Number 13-9


Iowa Needs Income-Tax Reform!





After years of discussions and debates, the Iowa Legislature finally adopted a property tax reform bill that Governor Terry Branstad signed into law earlier this year. Perhaps now our elected officials can turn their attention toward reforming the state’s income-tax system. The nine states that have no income tax have out-performed the states with the highest income-tax rates, even through the recent recession. Several states have undertaken an overhaul of their income taxes, most recently North Carolina. Our neighboring state, Kansas, has reformed state income taxes over a two-year period, making adjustments this year in the reforms adopted last year. Indiana adopted tax reforms this year to build on cuts adopted two years ago. Rhode Island officials were able to implement income-tax reform with a divided state government. Iowa elected officials should follow the examples of these and other states that have adopted income-tax reforms.




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