Iowans for Discounted Taxes (IDT) has come up with a novel idea for Iowa, which could use real tax relief.
IDT proposes discounts of 15% for Iowans on their property, income, and sales taxes across the board. The goal, according to IDT, is “to put more money in your pocket, keep more Iowans and Iowa-based businesses from leaving, and to attract more residents and businesses from other states.” IDT has obtained a report from the Beacon Hill Institute which estimates that IDT’s proposal would create 18,000 new jobs within one year of implementation while maintaining revenue neutrality. You can read BHI’s complete report here.
IDT Founder and President Kevin McLaughlin describes discounting taxes as “just like discounting at Best Buy, Costco and Lowe’s: you keep more of your money, but the state’s economy grows by keeping more residents and businesses from leaving, and by attracting new ones.”
There is no question that Iowa could use real tax relief. Iowa ranked 46th in the nation on the Tax Foundation’s 2010 State Business Tax Climate Index. Iowa’s ranking is due to the fact that the state has one of the highest corporate income tax rate in the country, which NTU has highlighted as a concern. Iowa’s anti-business tax system has contributed to job losses and workers fleeing the state in search of better economic opportunities elsewhere.
Recently, Kevin McLaughlin participated in an interview with Ken Van Doren, the host of The Voice of Liberty radio show, and discussed his group’s proposal in detail. You can listen to the interview in its entirety and learn more about IDT’s novel idea for Iowa here.