To the Editor:
The political party in control of the Iowa Legislature is proposing decreasing Iowa income taxes, exempting all retirement income from Iowa taxes, eliminating capital gain state tax, and decreasing corporate taxes. I have one question: If Iowa has less tax revenue, what services will be cut?
As every household knows, if income is cut, households have less money to spend. If a family’s income is reduced, it means expenses must be cut. In order to have a balanced budget, less income means expenses have to be cut.
The State is the same. If the State reduces its income, then expenses will have to be cut.
According to the governor’s proposed budget, in 2022 Iowa’s income will be $9,065 million. According to the Legislative Services Agency, the tax cuts proposed will subtract $500 million in 2024 and when fully implemented will subtract $1,625 million from Iowa’s income, which means almost 20% less income.