Public Domain
ADVERTISEMENT

Iowa is one of five states to earn an overall “A” grade for the health of our manufacturing industry on a scorecard recently released by Ball State University.

While Iowa scored high in categories like logistics, human capital, and fiscal health, the state’s only “F” is our tax climate; grades were assigned using a bell curve distribution. 

The map below shows Iowa stands out from our neighboring states as the only one to receive an overall “A” and that is something we should all be proud of. But the “F” in tax climate sticks out and really gnaws at us. Few factors garner as much policy interest as do state and local taxes. To measure tax climate, Ball State looked at corporate, income, property, sales and use, and unemployment insurance tax data.

If ITR were assigning grades to Iowa’s tax climate, we’d likely assign an “incomplete” rather than an “F”. 

The legislature has passed, and Governor Reynolds has signed, significant property tax and income tax legislation over the past several years, some aspects of which are still being phased in. Much has been said by our elected officials about ensuring that progress continues and even during the COVID-impacted legislative session of 2020, both Governor Reynolds and the Iowa Senate proposed ways to improve our state’s tax climate.

Manufacturing is critical to Iowa’s economic strength, and 2020 has shown that businesses can operate virtually anywhere. Iowa needs to address the state’s high tax burden. Businesses, entrepreneurs, and individuals will vote with their feet and move to states with the best regulatory and tax climates.

Get CT In Your Inbox!

Don't miss a single update.

You May Also Like

Matt Whitaker Wins Our Iowa U.S. Senate Republican Primary Straw Poll

Matt Whitaker is the winner of Caffeinated Thoughts first straw poll for the Republican primary race for Iowa’s open U.S. Senate seat.

Iowa Dept. of Public Health Announces 102 New COVID-19 Cases, One Death Over Weekend

The state of Iowa now has a total of 336 COVID-19 cases, four deaths, and 5,013 negative tests to date the Iowa Department of Public Health announced.

If Elected, Fred Hubbell Won’t Allow Religious Liberty Protection to Be Passed

After the Supreme Court ruling in Masterpiece Cakeshop v. Colorado Civil Rights Commission favoring religious liberty, Iowa Democrat Gubernatorial Primary frontrunner Fred Hubbell said of legislation to protect religious liberty, “I’m not going to allow that kind of law to get passed in our state.”

Iowa House Omnibus Budget Public Hearing Tomorrow

Democrats in the state House today requested a public hearing on the…