Wants tax changes
To the editor:
As a small business owner in Stratford, I see the challenges that owning a business in Iowa produces. While our neighbors in South Dakota have no corporate income tax and the nonpartisan Tax Foundation ranks them as having the second-best business tax climate in the country, Iowa has one of the highest corporate tax rates in the country and is ranked 40th for business tax climate. Additionally, Iowa has one of the highest individual income taxes in the Midwest. To jump start our economy, create jobs and make Iowa competitive, we need comprehensive tax reform.
It’s not that state leaders and lawmakers aren’t trying to compete, but our current system, which is slated to handout over $500 million in tax credits next year, is no substitute for a stable, low tax environment that offers long-term predictability to business leaders and entrepreneurs.
Reforming the individual income tax is equally important for growth because most small businesses file under this tax. Furthermore, domestic migration statistics show us that people are fleeing heavily taxed states like New York, New Jersey, and Illinois for better tax climates like Texas, Florida, and Nevada.
By reforming the Iowa tax code, not only will we stimulate economic growth and be more competitive with our neighboring states, we’ll become a more attractive place to live and do business. It’s time for the Legislature and Gov. Kim Reynolds to put forth a comprehensive tax plan that makes Iowa a destination for businesses and individuals seeking the American dream.