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Contact: David Hogberg 319-385-3462 Are Higher Sales Taxes the Solution? Mt. Pleasant, IA – Will raising the state sales tax relieve heavy dependence on property taxes for Iowa cities? That issue is discussed by Public Interest Institute Research Analyst David Hogberg in a November INSTITUTE BRIEF. Hogberg examines a report from the Iowa League of Cities and Des Moines Register editorial, which are critical of the state’s current property tax system. He says one option that both the Iowa League of Cities and Des Moines Register would presumably advocate is raising the state’s sales tax. Hogberg examines whether this would be the best option for the state of Iowa to pursue, by comparing Iowa to other states. He finds the more the cities are reliant on sales tax, the less total revenues they are likely to have. Hogberg concludes that while Iowa’s cities have less revenue that cities in many other states, it is not clear that they are underfunded. He says what is clear that raising the state sales tax is not the solution. For additional information on this INSTITUTE BRIEF, or any other Public Interest Institute publications, you may contact PII at: (319) 385-3462 or log on to the PII web site at: www.limitedgovernment.org. ####
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