Skip to content

Des Moines Editors Reject Income Tax Repeal as Dangerous South-Dakotafication

Last updated on 2018-12-03

Iowa Senate Majority Leader Bill Dix wants to eliminate Iowa’s corporate and indivisual income taxes. The Des Moines Register raps that proposal by pointing to South Dakota:

At the same luncheon in 2015, Dix said: “The ultimate goal is the elimination of the income tax. That will change everything for generations to come.”

He’s exactly right. It would change everything. It would ensure that future generations would pay one of the most regressive tax burdens in the nation, as South Dakotans do now. It would create more budget shortfalls, which South Dakota is again facing this year. It wouldn’t guarantee to boost the economy, because studies have found little evidence of that result. And the resulting cuts in public services and quality of life would reduce the state’s attractiveness as a place to live [editorial board, “Sen. Bill Dix’s Cuts Would Turn Iowa into South Dakota,” Des Moines Register, 2017.12.09].

Even the Iowa Chambers of Commerce don’t want to get rid of their state income tax. Iowa Chamber Alliance exec John Stineman said his group would like its income taxes down but not out:

He said he’d like to see Iowa’s corporate rate reduced to less than 9 percent, and “we don’t have an expectation to be less than 5 (percent)” [Brianne Pfannenstiel, “Iowa Chamber Alliance Will Seek Tax Reform in Coming Legislative Session,” Des Moines Register, 2017.12.06].

How can it be so hard to persuade South Dakota businessowners to accept the kind of income tax that Iowa businessowners recognize as an essential part of the three-legged stool of stable state finances?

5 Comments

  1. Porter Lansing

    South-Dakotafication. Good one. A quick tale. Decades ago, before John Denver, Colorado was governed by conservative Republicans. Their cry was “Don’t Cali-Fornicate Colorado!” It was a call for conservatism and a call to reject progress. That was the time when CO became the only chosen location to vote down an Olympics. Because of that shallow minded, regressive outlook we’re the only winter Olympics training state without a bobsled facility. Our young people would be some of the worlds best. That was the end of conservative rule of Colorado, much to our benefit.
    South-Dakotafication would be highly divisive for Iowa. Cali-Fornication was exactly what propelled CO to the economic powerhouse we are today.

  2. Loren

    I would have been a life-long Republican had I realized, years ago, I could pay my bills by reducing my income and anything I bought would be paid for by the next generation. What a philosophy! (See current GOP tax bill.)

  3. mike from iowa

    Speaking of winter olympics and wingnuts (waaaaaaay off topic) retiring US Sinator from Arizona, Jeff Flake snowflake R was born in…wait for it…. Snowflake, Arizona. You can’t make this stuff up. I am ready for the ban hammer.

  4. Roger Elgersma

    So South Dakota has done some good in the world by being a bad example.

  5. Porter Lansing

    Good one, Roger. :)

Comments are closed.