Replacing income tax with a jacked-up sales tax is a cross-generation big deal, but candidates are dropping the ball—I'm seeing virtually nothing about it on social media. People hear "sales tax" and think it’s fair because it sounds flat, but working Iowan spend more of their available money getting by. Sales taxes only mean a far bigger chunk of working class or middle income Iowans' disposable income goes to taxes, while the wealthy barely feel it. It leaves our kids holding the bag. How will candidates pay for their greater support of public schools, health care, clean water, etc.?
Thanks Jim. I posted Ed's article on Reddit. I have received in the order of 30,000 views in the past couple of days. And many comments in support of Ed's essay.
Reynolds fiscal policies have been a disaster. She has turned a budget surplus into a deficit by giving away tax dollars to the wealthy. Now her successor plans to do the same thing. We have to return to the policy that taxes must be based on ability to pay.
This is much more than a TAX-FAIRNESS ISSUE. Since 1980 the GOP have cut taxes for the WEALTHY to the tune of $75 Trillion--nationwide. Today the middle-class is paying the bulk of all taxes and living paycheck to paycheck. BUT, HERE IS THE PROBLEM--UNTIL WE QUIT VOTING FOR WEALTHY GOP CANDIDATES--WHOSE ONLY PURPOSE IS TO KEEP THEIR WEALTHY DONORS VERY HAPPY---NOTHING WILL CHANGE. However, there will be a day when the middle-class is gone, and only the WEALTHY will be left to foot the bills.
A large part of the confusion about tax code revisions revolves around the difference between who benefits from income tax v. Sales tax increases. The first hurts corporations and people of means. The second damages those least able to subsist. IOWA governor and legislature are looking to the latter course.
I am so glad you are pushing this warning...would you be willing to share the source of the $320,000,000 number...I'd love to write a letter to the editor and use that number....We need to spread the reality of this horrible bill far and wide and in multiple media outlets. THANKS so much,
Thanks, Sue. The $320 million figure is from an Iowa Department of Revenue analysis of the original 3.9% flat tax plan approved in 2022. A part of that analysis is included in a link in this IPR article from when it was signed into law.
Those promoting moving away from income taxes to increased sales taxes must have forgotten their civics class lesson that sales taxes are regressive.
Or they think that is a good thing. 😡
Replacing income tax with a jacked-up sales tax is a cross-generation big deal, but candidates are dropping the ball—I'm seeing virtually nothing about it on social media. People hear "sales tax" and think it’s fair because it sounds flat, but working Iowan spend more of their available money getting by. Sales taxes only mean a far bigger chunk of working class or middle income Iowans' disposable income goes to taxes, while the wealthy barely feel it. It leaves our kids holding the bag. How will candidates pay for their greater support of public schools, health care, clean water, etc.?
Sales taxes are regressive. Politicians used to think that was a bad thing.
Thanks Jim. I posted Ed's article on Reddit. I have received in the order of 30,000 views in the past couple of days. And many comments in support of Ed's essay.
Same old Republican playbook
Reynolds fiscal policies have been a disaster. She has turned a budget surplus into a deficit by giving away tax dollars to the wealthy. Now her successor plans to do the same thing. We have to return to the policy that taxes must be based on ability to pay.
This is much more than a TAX-FAIRNESS ISSUE. Since 1980 the GOP have cut taxes for the WEALTHY to the tune of $75 Trillion--nationwide. Today the middle-class is paying the bulk of all taxes and living paycheck to paycheck. BUT, HERE IS THE PROBLEM--UNTIL WE QUIT VOTING FOR WEALTHY GOP CANDIDATES--WHOSE ONLY PURPOSE IS TO KEEP THEIR WEALTHY DONORS VERY HAPPY---NOTHING WILL CHANGE. However, there will be a day when the middle-class is gone, and only the WEALTHY will be left to foot the bills.
This is such a critical issue. Thank you, Ed!
A large part of the confusion about tax code revisions revolves around the difference between who benefits from income tax v. Sales tax increases. The first hurts corporations and people of means. The second damages those least able to subsist. IOWA governor and legislature are looking to the latter course.
Hi Ed,
I am so glad you are pushing this warning...would you be willing to share the source of the $320,000,000 number...I'd love to write a letter to the editor and use that number....We need to spread the reality of this horrible bill far and wide and in multiple media outlets. THANKS so much,
Sue Ravenscroft
Thanks, Sue. The $320 million figure is from an Iowa Department of Revenue analysis of the original 3.9% flat tax plan approved in 2022. A part of that analysis is included in a link in this IPR article from when it was signed into law.
https://www.iowapublicradio.org/state-government-news/2022-02-24/iowa-legislature-sends-3-9-flat-income-tax-to-governors-desk