Iowa s 2024 Income Tax Cuts Dynamic Economic and State Revenue Impacts Common Sense Institute Iowa

Introduction

In 2022, Iowa passed a bill with an income tax rate of 3. 9 % in 2026. In this tax reform, if the corporate tax rate is reduced by a certain profit, the corporate tax rate will be reduced to 5. 5%in the long term. As part of the reform implemented from 2018 to 2022, Iowa has reduced the tax rate category of individual income tax from this fiscal year to 9 categories, the maximum tax rate of 8, 98%, and a maximum tax rate of 5, 7%. 。 At the start of the parliament in 2024, Iowa continued to shift to two brackets, the maximum tax rate in 2025 was 4, 82%, and from 2026 to 3, 9%. With these changes, Iowa was one of the 10 states, one of the ten states, which had the most taxable tax in 2018, but in 2026. Congress and the governor passed a bill this year to accelerate the tax rate reduction of individual income tax and r e-reduce the target tax rate, as it was expected to continue the surplus.

With the approval of the Senate file 2442 in April 2024, Iowa will shift to an income tax rate of 3. 8%from 2025. This report first explains the historical background of Iowa's Income Tax Policy. It describes the background of the income tax reduction without impairing the state budget and why tax policy is important. We also consider tax saving for personal taxpayers. It describes the direct or static impact of the change in income tax provided by the Iowa State Legal Service Bureau (LSA) to state and local revenue. From this static effect, the Remi Tax-Pi model is modeled on indirect or dynamic effects on the economy and income. Finally, we predict three state revenue and expenditure scenarios, evaluating recent sustainable tax reductions and whether members can continue tax reductions without reducing the state budget.

Key Findings

The dynamic economic model of Common Sense Institute is 10 years of income tax reduction based on SF2442 ...

Tax savings of $ 185 billion to income taxpayers.
Increase tax postponements by $ 3 billion in the economy as a whole.
GDP growth rate $ 172 billion.
Approximately 6, 800 new employment will be created by 2025. < SPAN> Iowa has passed a bill in 2022 with an income tax rate of 3. 9 % in 2026. In this tax reform, if the corporate tax rate is reduced by a certain profit, the corporate tax rate will be reduced to 5. 5%in the long term. As part of the reform implemented from 2018 to 2022, Iowa has reduced the tax rate category of individual income tax from this fiscal year to 9 categories, the maximum tax rate of 8, 98%, and a maximum tax rate of 5, 7%. 。 At the start of the parliament in 2024, Iowa continued to shift to two brackets, the maximum tax rate in 2025 was 4, 82%, and from 2026 to 3, 9%. With these changes, Iowa was one of the 10 states, one of the ten states, which had the most taxable tax in 2018, but in 2026. Congress and the governor passed a bill this year to accelerate the tax rate reduction of individual income tax and r e-reduce the target tax rate, as it was expected to continue the surplus.

Background

{book}

The dynamic economic model of Common Sense Institute is 10 years of income tax reduction based on SF2442 ...

rumor
GDP growth rate $ 172 billion.	Approximately 6, 800 new employment will be created by 2025. In 2022, Iowa passed a bill with an income tax rate of 3. 9 % in 2026. In this tax reform, if the corporate tax rate is reduced by a certain profit, the corporate tax rate will be reduced to 5. 5%in the long term. As part of the reform implemented from 2018 to 2022, Iowa has reduced the tax rate category of individual income tax from this fiscal year to 9 categories, the maximum tax rate of 8, 98%, and a maximum tax rate of 5, 7%. 。 At the start of the parliament in 2024, Iowa continued to shift to two brackets, the maximum tax rate in 2025 was 4, 82%, and from 2026 to 3, 9%. With these changes, Iowa was one of the 10 states, one of the ten states, which had the most taxable tax in 2018, but in 2026. Congress and the governor passed a bill this year to accelerate the tax rate reduction of individual income tax and r e-reduce the target tax rate, as it was expected to continue the surplus.
1934	promise
1953	{success}
1955	Each state began to introduce income tax in the early 20th century. On e-third of the state, including Iowa, introduced income tax in the 1930s. [Currently, only seven states have not imposed income tax. [In addition, Washington and New Hampshire state are ta x-free. Iowa has only 12 states, as it currently has a progressive tax structure together with most states that are taxing income tax. By 2025, Iowa will be the 13th flat tax, and will be the 10th state that shifts from a modern tax rate system to a single flat personal income tax rate. [IV].
1957	{Ludge}
1965	Effective taxation year
1967	overview
1971	rumor
1975	rumor
1979	rumor
1987	{Rumors Descent} {Rumors}
1996	{\| You can do it so that you can do that
1998	{Rumors Descent} {Rumors}
2019	{last}
Rust} {Last

Why It Matters

rumor

{Rumbers} {rumbers}

{last}

The tax rate of nine taxable income groups with a maximum tax rate of $ 45. 000 has changed from 0. 4%to 9. 98%.

{Rumbers} {rumbers}

What it means for Taxpayers

{Rumbers} {rumbers}

Rumorizing} {Rumors

Introduction of annual slide system of tax rate

{Budget} {Budget

Introduction of annual slide system of tax rate

Budget} {Budget

The total tax rate is reduced by 10%, the 9 brackets of tax income are 0. 36%to 8. 98%, and the maximum bracket is indexed for $ 45. 00 ($ 51. 660).

Reduction

rumor}

{support}

Static Impacts

The total tax rate will be reduced from 0. 33%to 8. 53%for nine taxable income categories, led by a maximum tax rate of $ 73. 710 (with annual slides).

rumor

rumor	{Rome}	One year after pandemic measures were implemented, the annual inflation rate began to accelerate. The annual inflation rate in June 2022 was 9. 1%, reaching the highest level in the past 40 years. [However, inflation rates declined. Inflation is still significantly higher than the historical standard and is led by 2 % interest rates on the Fed. [Simply put, interest rate hikes are approaching, and costs continue to rise almost twice the average inflation rate for 10 years before pandemic. Iowa's consumer costs have risen more than 20 % over four years since Congress passed the CARES law. As a result, Iowa's average households need $ 1, 000 per month to maintain their current standards of living [XII]. [Wage has not caught up with it. [XIII] On the other hand, the federal government's catalysts, which have risen prices higher than the wages of Iowa people, have increased tax revenues throughout the country.	While California's mutual fund profits rose by 40% between 2019-2020 and 2023-24, costs rose by 58%. [xviii] Apart from inflated municipal costs, California has the worst fiscal disparity in the country. [xviii] The number of Californians living at or near the poverty line will increase from 28. 7% in 2021 to 31. 1% in 2023. [In real time, the budget deficit is $73 billion, effectively forcing deep cuts. [Between July 2021 and July 2022, more than 400. 000 residents will leave the state in a pure form, heading for Texas and Arizona. [One of them will have zero income tax. Starting in fiscal year 2023, Arizona will consolidate its graduated personal income tax system into a low rate of 2. 5%, the lowest of all states that impose income tax. [Iowa is on the same path. Figure 1 shows actual and forecast annual total fund benefits, appropriations, annual state surpluses, and Taxpayer Relief Fund (TRF) balances from fiscal year 2017-2018, prior to the enactment of SF2442, through fiscal year 2025-26. When benefits increased by 30%, Iowa lawmakers budgeted and spent significantly less than allowed by law in 2021. [xxiii] This annual allocation and revenue gap created a surplus, shown as the gap between the red and yellow lines in Figure 1, beginning in 2021. Lawmakers used this surplus to maximize the state’s rainy day fund, removing more than $3. 7 billion from the Taxpayer Rainy Day Fund to support tax cuts while continuing to realize additional surpluses each year, as represented by the blue and greenish lines in Figure 1. These measures provide a cost-effective and economic rationale for lowering Iowa’s income tax rate.	Table 2 SF2442 Income tax rate for single decluters before and after the introduction	Table 3 SF2442 Income tax rate for general decluters before and after the enactment	Table 4 and Table 5 assume that each taxpayer does not urgently apply for other deductions, exemptions, or deductions. The regular deduction amount in 2024 was $ 14. 600 for personal taxpayers and $ 29. 200 for joint taxpayers. The National Tax Agency has not yet announced the normal deduction amount in 2025, so the table expects to be $ 15. 00 in personal taxpayers and $ 30. 000 in joint taxpayers. In addition, Iowa has not announced the two tax rates of inflation adjustments in 2025, as in conventional laws. In 2024, the tax rate of 4, 82%was $ 6. 211 for single taxpayers and $ 12. 421 for general taxpayers [XXV]. The XXV table adjusts the tax rate in 2025 to $ 12. 501 to $ 6. 251.
Table 5 SF2442 Personal income tax-2025 or later	Reducing personal income tax rates reduces state profits. The Iowa State legislative proposal agency considers the impact on profits on a static basis, and the policy change has a secondary impact on financial behavior, as a result of the GDP growth rate and the creation of employment. Changes are not taken into account. On a static base, if the individual income tax rate is reduced by SF2442, the number of $ 328, 000 in the 2024-25 fiscal year (the effects of half a year of the 2025 fiscal year) and the $ 605, 000 states in the 2025-26 fiscal year decrease. Is estimating. Since LSA continues to monitor the current bills before the introduction of SF2442, in the past, tax reform measures in 2018 and 2022 to introduce a full flat tax rate of 3 or 9 % of income tax rates from 2026 in the past. It is implemented, and most of the impact on revenue will occur in the taxation year in FY2025. SF2442 has reduced the income tax rate in Iowa from 2026 from 3, 9%to 3, 8%. As a result, the static impact on revenue decreases from $ 650 billion in FY2025-26 to $ 97 million in FY2026-27. Table 6 is a monitor of LSA on the static impact of SF2442's personal income tax reduction on state profits. This impact is	rumor	(Million dollars)	Economy 2025	Economic 2026	Economic 2027

Introduction of annual slide system of tax rate

{Economic year}

Economy 2030

rumor	{Rome}	One year after pandemic measures were implemented, the annual inflation rate began to accelerate. The annual inflation rate in June 2022 was 9. 1%, reaching the highest level in the past 40 years. [However, inflation rates declined. Inflation is still significantly higher than the historical standard and is led by 2 % interest rates on the Fed. [Simply put, interest rate hikes are approaching, and costs continue to rise almost twice the average inflation rate for 10 years before pandemic. Iowa's consumer costs have risen more than 20 % over four years since Congress passed the CARES law. As a result, Iowa's average households need $ 1, 000 per month to maintain their current standards of living [XII]. [Wage has not caught up with it. [XIII] On the other hand, the federal government's catalysts, which have risen prices higher than the wages of Iowa people, have increased tax revenues throughout the country.	While California's mutual fund profits rose by 40% between 2019-2020 and 2023-24, costs rose by 58%. [xviii] Apart from inflated municipal costs, California has the worst fiscal disparity in the country. [xviii] The number of Californians living at or near the poverty line will increase from 28. 7% in 2021 to 31. 1% in 2023. [In real time, the budget deficit is $73 billion, effectively forcing deep cuts. [Between July 2021 and July 2022, more than 400. 000 residents will leave the state in a pure form, heading for Texas and Arizona. [One of them will have zero income tax. Starting in fiscal year 2023, Arizona will consolidate its graduated personal income tax system into a low rate of 2. 5%, the lowest of all states that impose income tax. [Iowa is on the same path. Figure 1 shows actual and forecast annual total fund benefits, appropriations, annual state surpluses, and Taxpayer Relief Fund (TRF) balances from fiscal year 2017-2018, prior to the enactment of SF2442, through fiscal year 2025-26. When benefits increased by 30%, Iowa lawmakers budgeted and spent significantly less than allowed by law in 2021. [xxiii] This annual allocation and revenue gap created a surplus, shown as the gap between the red and yellow lines in Figure 1, beginning in 2021. Lawmakers used this surplus to maximize the state’s rainy day fund, removing more than $3. 7 billion from the Taxpayer Rainy Day Fund to support tax cuts while continuing to realize additional surpluses each year, as represented by the blue and greenish lines in Figure 1. These measures provide a cost-effective and economic rationale for lowering Iowa’s income tax rate.	Table 2 SF2442 Income tax rate for single decluters before and after the introduction	Table 3 SF2442 Income tax rate for general decluters before and after the enactment	Table 4 and Table 5 assume that each taxpayer does not urgently apply for other deductions, exemptions, or deductions. The regular deduction amount in 2024 was $ 14. 600 for personal taxpayers and $ 29. 200 for joint taxpayers. The National Tax Agency has not yet announced the normal deduction amount in 2025, so the table expects to be $ 15. 00 in personal taxpayers and $ 30. 000 in joint taxpayers. In addition, Iowa has not announced the two tax rates of inflation adjustments in 2025, as in conventional laws. In 2024, the tax rate of 4, 82%was $ 6. 211 for single taxpayers and $ 12. 421 for general taxpayers [XXV]. The XXV table adjusts the tax rate in 2025 to $ 12. 501 to $ 6. 251.
Table 5 SF2442 Personal income tax-2025 or later	This bill further reduces tax revenues in the school district by inadvertently reducing the income tax of the school district. Table 7 shows the static effects of SF2442's personal income tax reduction on school district interests.	rumor	(Million dollars)	(Million dollars)	Fiscal Year 2026	Fiscal Year 2026

Introduction of annual slide system of tax rate

Dynamic Impacts

Space

Fiscal Year 2030

Space

Changes in State Revenue

{space}
-2. 4	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	First, LSA does not believe that SF2442’s income tax cuts through FY2029 will have an impact on government costs. However, if the tax cuts lead to a budget deficit, the bill would allow the state to use $3. 74 billion in TRF to lower income tax rates to offset the revenue loss, thus limiting the decline in the state budget. Thus, CSI modeling does not imply a reduction in state costs. At the same time, we consider all static reductions in state revenues as a direct stimulus to the economy, assuming that local costs equivalent to the tax savings are reduced because of a simultaneous reduction in school district income tax rates, as shown in Table 7. At the same time, we must consider how this money flows into and through the economy. Because the LSA has no effect on income after FY2030, the CSI model also projects a static impact on income from FY2031 to FY2034.
Table 8. Financial impact: Reduction of individual income tax rate in SF2442	{Remi}	rumor	(Unit: $ 1 million)	Summary} {Summary	{Outline} {Outline} {Outline} {Outline} {Outline} {Overview} {Overview} {Overview}	Summary} {Summary} {Summary} {Summary}	Summary} {Summary} {Summary} {Summary}	Summary} {Summary} {Summary} {Summary}	10 years	{support}	Savings
$ 92, 8	$ 95, 4	$ 98, 1	$ 101, 0	$ 103, 9	$ 108, 0	$ 112, 4	$ 116, 8	$ 121, 5	$ 1. 845, 2	rumor}	{Rumbers}
$ 278, 8	$ 237, 3	$ 203, 7	$ 181, 1	$ 168, 4	$ 164, 9	$ 167, 8	$ 174, 8	$ 184, 6	$ 3. 001, 1	{Summary}	{Grant Domestic Production}
$ 251, 0	$ 179, 8	$ 120, 4	$ 83, 8	$ 64, 8	700	600	500	500	500	600

$ 1. 719, 4

{Round}

Rumorizing {Rumbers

Changes in joint employment

rumor
-2. 4	1. 100	{side}	{side}	{Some}	{Some}	In Table 8, the direct income tax saving is the same as the static or direct tax reduction of the individual income tax based on the data of the Iowa State Revenue (iDR) data. Other lines are indirect or sid e-b y-side financial effects, resulting in tax cuts by model monitoring. "Total increase in tax posting income" is also called "disposable income" and sums the increase in tax transfer income of all Iowa people. This indicator shows the benefits of taxpayers in the Iowa Economic as a whole, regardless of whether or not to pay for income tax. Tax cuts also create financial strengths, as shown in the last two lines in Table 8, leading to an increase in employment and GDP. The indicators that show the total change of employment are not accumulated, but year.	Table 9 shows the static and dynamic impact of reducing the individual income tax rate in SF2442. The change indicated in Table 9 as "change of income (static)" has a direct effect on tax revenue, as in the "direct income" item in Table 8. Table 9 shows the effects of this influence by monetary year in the state, and Table 8 shows each tax year.	Runverse} {Runverse	Table 9.	Rumorizing} {rumor divine} {Rumor rumor} {rumor divine} {rumor divine} {rumor rumor} {rumor	First, LSA does not believe that SF2442’s income tax cuts through FY2029 will have an impact on government costs. However, if the tax cuts lead to a budget deficit, the bill would allow the state to use $3. 74 billion in TRF to lower income tax rates to offset the revenue loss, thus limiting the decline in the state budget. Thus, CSI modeling does not imply a reduction in state costs. At the same time, we consider all static reductions in state revenues as a direct stimulus to the economy, assuming that local costs equivalent to the tax savings are reduced because of a simultaneous reduction in school district income tax rates, as shown in Table 7. At the same time, we must consider how this money flows into and through the economy. Because the LSA has no effect on income after FY2030, the CSI model also projects a static impact on income from FY2031 to FY2034.
Economic 2026	Economic 2027	2028	2029	2030 Accounting Year	2031	2032 Fiscal year	2033	2034 Fiscal year	10 years old	{Range}	{Rumbers}
-The $ 605, 3	-The $ 97, 0	-The $ 96, 8	-The $ 99, 5	-$ 102, 4	-$ 106, 5	-The $ 110, 8	-The $ 115, 2	-The $ 119, 8	-$ 1. 781, 4	Membership} {MemberShip	{Rumbers}
-The $ 593, 4	-The $ 86, 3	-The $ 88, 1	-The $ 92, 1	-$ 95, 7	-$ 100, 0	-The $ 104, 2	-The $ 108, 3	-The $ 112, 4	-The $ 1. 661, 6	-$ 100, 0	rumor

{round}

Impact on the State Budget

$ 10, 7

{round}

$ 8, 7

{round}

$ 7, 4

{round}

$ 6, 7

Scenario 1

{round}

$ 6, 5

{round}

Scenario 2

$ 6, 6

{side}

$ 6, 9

{round}

$ 7, 4

Scenario 3

{side}

$ 119, 8

{round}

{side}

summary

In a static look, Iowa taxpayers' tax saving means a loss of the same amount of state revenue. However, income tax reductions have a secondary financial effect and increase the profit from sales, income tax, and other state taxes by only the minimum amount. The line of the "difference" indicates the increase in state profits due to such a side effect, and the rows of "changes in profits (driving force)" are equivalent to the pure of state profits after considering the increase in profits. The fiscal catalyst by reducing personal income tax will offset $ 120 million in the first 10 years.

If the tax rate is reduced carefully, it could lead to a deficit of a state budget. Since the passage of SF2442, there are members and governors who are interested in additional tax cuts, while others are concerned that even the current tax cuts are poorly balanced [XXVIII]. CSI is a model for modeling the dynamic finances and benefits of income tax reduction, as well as to help members and the general public to evaluate recent sustainability of tax cuts and the feasibility of future tax reductions. I predicted a plausible scenario [XXVIII]. The one was based on the assumption of the dynamic model described in the previous section "Dynamic Impac t-SF2442" Income Tax Reduction Reduction "", and the other is assumed that a smooth and powerful recession. It is a thing.

Conclusion

State budget experts have estimated that the current tax cuts will continue, without the need to transfer money from the Rotary Foundation to the artery fund until at least 2029. The budget note of the previous version of the bill, HF2705, stated that "the income does not fall below the amount until the 2029 fiscal year, according to the aggressive legislation, [XXIX]. [XXIX] However, this annotation was not included in the incapable of cancellation of SF2442 budget notes, and there were virtually no major changes in policy proprietors to update this evaluation. If the tax reduction profit falls below the budget, the state has been found in the law that the state will use the ove r-year surplus or transfer the Rotary Foundation to the state aortic fund to make up for the difference. Rea l-time predictions are expected to have a $ 2. 4 billion surplus in the 2025 fiscal year. [As shown in Fig. 1, the rea l-time TRF balance is $ 3. 74 million. [XXXI].

To understand the assessment of the legislature, Common Sense University projected the impact of the state revenue law in relation to allocations towards three hypothetical scenarios for the right ten years. The monitoring does not foresee other configurations of tax politicians in SF2442 or other laws passed in 2024. The baseline diplomas shown in the text in Figures 3, 4, and 5 give a conference to evaluate the revenue (REC) for March 2023 "before the adoption of SF 2442" and the actual revenue and allocation for the past few years. [In Sound Value University's modeling, the REMI Tax-PI model is used to project the dynamic impact of the fall of the income tax in 2024 for all three scenarios with the introduction of the same basic assumptions as described in the "Dynamic Impact of Easing Income Tax Rates on SF2442" section, except that we make assumptions about the day-to-day changes in the benefit changes in each scenario. In one of them, we expect there to be a flat expression between the change in total income and the amount of benefit lost due to the lowering of the tax. For example, in the first scenario, the state's profits are expected to increase by 4% from 2030 to 2031.

In all three scenarios, to calculate the failed income of the common fund and then to reduce it with income tax in 2024, the original dynamic characteristics of the profits obtained when modeling the Remi Company CSI, rather than the static characteristics identified by the LSA in the fiscal note. Table 9 shows the static and dynamic effects on profits for script 1 (Figure 3). These show the estimates and assumptions used in the CSI financial model in the section of the report entitled "Dynamic Impact - Reduction of the SF2442 Income Tax Rate". The reduction in profits in the models for scripts 2 and 3 (Figures 4 and 5) does not change much depending on the composition of the total profits in any of the scenarios.

The result shown in Table 8 and 9 shows a dynamic impact in the case of a reduction in personal income tax in SF2442, compared to the reactionary significance (reactive is the aggressive before sf2442. It has the same meaning as a legislation). (Based on this, the external moment that has nothing to do with the tax reduction itself does not change the result of the model, even if the economy becomes better or worse than the model forecast. The situation may affect the state's revenue from a decline in income tax, which will lead to an unpleasant case of this year's income. I predict whether or not.

FIG. 2 shows the past performance data of LSA and REC and future valuation as the starting point of the three scenarios that can be predicted in this section. The amount is the same as Fig. 1, but the total income of the joint fund has been added. "Total income of the Fund" indicates what is called "slip" or "tax and other total income" in state economic documents. "Pure income is equal to tax revenue, then brings relocation, return, and relocation, and in the state economic document," pure income plus relocation ". In the drawing from 2 to 5, continuous drawings. The components comply with the actual information, indicates the dotted line, suggesting a surveillance of LSA, REC or CSI.

In the first scenario shown in Fig. 3, the same speculation is actually applied as the financial model in the previous section, "The dynamic impact is the SF2442 income tax reduction". This uses past trends to predict profits, distribution, and tax reductions outside the window given by the state. The results shown in < SPAN> Table 8 and Table 9 shows the dynamic impact in which the reduction of the personal income tax in SF2442 compared to the reactional significance (in fact is the fact that the fact is SF2442. It has the same meaning as aggressive legislation). (Based on this, the external moment that has nothing to do with the tax reduction itself does not change the result of the model, even if the economy becomes better or worse than the model forecast. The situation may affect the state's revenue from a decline in income tax, which will lead to an unpleasant case of this year's income. I predict whether or not.

In the first scenario shown in Fig. 3, the same speculation is actually applied as the financial model in the previous section, "The dynamic impact is the SF2442 income tax reduction". This uses past trends to predict profits, distribution, and tax reductions outside the window given by the state. The result shown in Table 8 and 9 shows a dynamic impact in the case of a reduction in personal income tax in SF2442, compared to the reactionary significance (reactive is the aggressive before sf2442. It has the same meaning as a legislation). (Based on this, the external moment that has nothing to do with the tax reduction itself does not change the result of the model, even if the economy becomes better or worse than the model forecast. The situation may affect the state's revenue from a decline in income tax, which will lead to an unpleasant case of this year's income. I predict whether or not.

In the 10 years from 2014 to 2023, the average year in Iowa increased 3, 97%, and pure income increased by 3, 89%. In the 20 years from 2004 to 2023, average increased by 4, 29%and 4, 11%, respectively. The average growth rate for each period is 4 %, 13 %, and 4 %. The state's economic situation is the main factor that determines the state income, but the change in tax system at the state and federal level also affected the state income of these periods. Script 1 uses the prediction of the pure income of the general fund by the 2026 accounting year created by the REC, and the total income of the Fund by 2025 because the REC does not evaluate the total income of the 2026 fiscal year. did. In order to evaluate the impact of the decline in income, the fiscal exposure forecast up to the 2030 fiscal year was adopted in the Financial Notebook of the SF2442 bill. In order to obtain a complete outlook for 10 years, the state does not provide prospects for each year, with 4 % of cost income and tax reduction each year until the 2034 fiscal year.

Figure 3 shows that if the income tax is reduced by SF2442, it will be the largest effect compared to the ant i-virtual version in the 2025 accounting year and the 2026 fiscal year. In the script 1, the pure income of the entire fund for the 2026 fiscal year does not reach $ 168 million. In the remaining ten years, income exceeds the distribution, and the 10 years after tax reduction will be $ 7. 52 billion in the surplus. If the SF2442 bill is not passed, the pure income of the general accounting will not fall below any year in 10 years. However, the shortage of revenue in FY2026 is due to the decrease in personal income tax, and it is not necessary to reduce budgets or enter from the Rotary Foundation. Currently, the state is expected to exceed $ 2. 4 billion by the end of the 2025 fiscal year, and can easily make up for the shortage due to tax revenue for the 2026 fiscal year. The XXXIIII scenario 1 does not require budget reductions or withdrawal from the Rotary Foundation for the next 10 years. < SPAN> In the ten years from 2014 to 2023, the average year's annual income in Iowa increased by 3, 97%and pure income increased by 3, 89%. In the 20 years from 2004 to 2023, average increased by 4, 29%and 4, 11%, respectively. The average growth rate for each period is 4 %, 13 %, and 4 %. The state's economic situation is the main factor that determines the state income, but the change in tax system at the state and federal level also affected the state income of these periods. Script 1 uses the prediction of the pure income of the general fund by the 2026 accounting year created by the REC, and the total income of the Fund by 2025 because the REC does not evaluate the total income of the 2026 fiscal year. did. In order to evaluate the impact of the decline in income, the fiscal exposure forecast up to the 2030 fiscal year was adopted in the Financial Notebook of the SF2442 bill. In order to obtain a complete outlook for 10 years, the state does not provide prospects for each year, with 4 % of cost income and tax reduction each year until the 2034 fiscal year.

Figure 3 shows that if the income tax is reduced by SF2442, it will be the largest effect compared to the ant i-virtual version in the 2025 accounting year and the 2026 fiscal year. In the script 1, the pure income of the entire fund for the 2026 fiscal year does not reach $ 168 million. In the remaining ten years, income exceeds the distribution, and the 10 years after tax reduction will be $ 7. 52 billion in the surplus. If the SF2442 bill is not passed, the pure income of the general accounting will not fall below any year in 10 years. However, the shortage of revenue in FY2026 is due to the decrease in personal income tax, and it is not necessary to reduce budgets or enter from the Rotary Foundation. Currently, the state is expected to exceed $ 2. 4 billion by the end of the 2025 fiscal year, and can easily make up for the shortage due to tax revenue for the 2026 fiscal year. The XXXIIII scenario 1 does not require budget reductions or withdrawal from the Rotary Foundation for the next 10 years. In the 10 years from 2014 to 2023, the average year in Iowa increased 3, 97%, and pure income increased by 3, 89%. In the 20 years from 2004 to 2023, average increased by 4, 29%and 4, 11%, respectively. The average growth rate for each period is 4 %, 13 %, and 4 %. The state's economic situation is the main factor that determines the state income, but the change in tax system at the state and federal level also affected the state income of these periods. Script 1 uses the prediction of the pure income of the general fund by the 2026 accounting year created by the REC, and the total income of the Fund by 2025 because the REC does not evaluate the total income of the 2026 fiscal year. did. In order to evaluate the impact of the decline in income, the fiscal exposure forecast up to the 2030 fiscal year was adopted in the Financial Notebook of the SF2442 bill. In order to obtain a complete outlook for 10 years, the state does not provide prospects for each year, with 4 % of cost income and tax reduction each year until the 2034 fiscal year.

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

Source: Survey on the Economic Impact Generated by COVID, National Institute of Statistics and Geography. lem is a dynamic one as, at least over the past. Generative AI can enhance productivity but may also lead to replacement of human employees. •. Teaching, learning, and academic research will experience. A partial substitution of tariffs for income tax revenues is nearly inevitable under a Trump presidency.

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