Four principles for fair, responsible taxes

Guest Column
By: 
Tod Bowman
Iowa State Senator, 29th Dist.

     Iowans deserve a tax system that is fair to everyone and increases prosperity. However, many think the system is rigged against them, and only lines the pockets of special interests.

     I believe there is bipartisan interest in comprehensive tax reform. I’m all for it, if we stick to four principles:

     • Tax reform must be fair.

     According to the Iowa Policy Project, when all state and local taxes are accounted for, Iowa’s lowest earners pay the largest portion of their income in taxes. We must address this situation, not make the problem worse.

     • Tax reform must simplify Iowa’s tax code.

     Iowa’s confusing collection of credits, deductions, and exemptions make our taxes look like some of the highest in the nation. What Iowans actually pay in taxes ranks us in the middle of the park, according to the Tax Foundation. Simplifying Iowa taxes will highlight our competitiveness as an attractive place to live and do business.

     • Tax reform must fit into Iowa’s budget.

     This year, state government faced big cuts, and things may not be better next year. We must not repeat the mistakes of Kansas, where massive tax cuts have caused an ongoing crisis that has forced the state to pay for necessities by stealing from road funding and raising other taxes.

     • Tax reform must examine corporate tax credits.

     Programs that help children, the elderly, and vulnerable Iowans have seen cuts. Yet corporate tax credits remain the same. We must make sure tax credits give us a good return on investment and are in the best interest of Iowans – not just a few big, out-of-state, for-profit businesses.

     Let’s get to work on true tax reform that benefits all Iowans. I want to know what you think. The more ideas we can pull together for smart, responsible tax reform, the more we can accomplish when the 2018 session gavels in come January.

     To contact Senator Bowman when the Legislature is in session, call the Senate Switchboard at 515-281-3371. Otherwise he can be reached at 563-370-2422. E-mail him at tod.bowman@legis.iowa.gov.

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