New report shows the real cost of corporate tax cuts in Iowa

National People’s Action affiliate group Iowa Citizens for Community Improvement has a new report out calling on Iowa policymakers to boost tax revenues and resist reducing state government spending.

The report, titled “The Cost of Cuts in Iowa,” finds that a 1 percent cut in state spending in Iowa leads to the loss of 580 jobs, and argues that increasing spending would help spur economic growth.

Since 2009, the report finds, per-capita state spending has declined 15 percent, leading to a reduction in economic activity.

“Iowa lawmakers should reverse this course of disinvestment and commit to building a prosperous future for all Iowa’s families, including a robust job market that supports Main Street businesses and overall community development,” the report says.

It also issues a few recommendations, including a “stronger, more equitable tax system” with higher burdens on “corporations and the rich”; the closure of corporate tax loopholes; and the promotion of “economic and racial equity” through the preservation of public investments and public-sector jobs.

Raising state revenues is particularly important, the report suggests, if lawmakers are serious about offsetting decreased local-government revenues with state aid as part of a property-tax reduction plan.

 

From the Des Moines Register

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