The Tax Foundation states: The modern market is characterized by mobile capital and labor. Therefore, companies will locate where they have the greatest competitive advantage. States with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth.
It is estimated that more than 60-80% of Iowa businesses are organized as sole proprietors, partnerships, limited liability companies and S corporations. The business owners of those entities pay income tax at the individual level.
According to our friends with Association of Business and Industry, this bill would put money into the hands of small business (the real Job Creators) so they can invest and grow their businesses. The Iowa Taxpayer Association also supports this bill because it puts money into the hands of everyday hardworking Iowans.
The National Federation of Independent Business (NFIB) supports this bill, as the biggest job growth comes 1-5 employees at a time. This bill helps small business entrepreneurs in every community in Iowa. We trust Iowans to spend their hard earned dollars how they best see fit.
With states like Illinois passing large tax increases, now is the time for Iowa to set ourselves apart and tell the world our business climate is improving and that we’re open for business. (The House just passed right to work, and cut property taxes by $47 million dollars.)
While not quantifiable, these measures sends a powerful symbolic message to small businesses and entrepreneurs that Iowa is open for business.
Iowa’s population is not growing as fast as other states. Iowa is losing a congressional seat. States that are gaining seats have an average top personal income tax rate of 2.8%. Iowa’s rate is 9%. (Study by Americans for Tax Reform)
An ALEC study in looking at Rich States, Poor States found the following:
Businesses and jobs migrated to low-tax states from 1996-2006
The non-income tax states had 23% job growth, compared to 12% job growth for high income tax states.
Incomes grew by 79% in non-income tax states versus 60% in the high income tax states
Non-income tax states had population growth that doubled states with high income taxes
High income tax rates deter economic growth and job creation in states
Visitors at the capitol this week: George & Kitty Snakenburg, Dana Miller, Joel & Debra Kephart of Ollie & Deke Wood, County Supervisor.
Question of the week: Do you support dropping the Income Tax to stimulate the economy?
I am always happy to deal with any requests you may have or any input you may offer! Please contact me during the interim at 641-634-2227 or email@example.com
Rep. Betty De Boef