State Auditor Rob Sand — a Democrat who’s running for governor — says the state income tax cuts Republican lawmakers have approved mean hard decisions are ahead when it comes to the state budget. The state’s current nine-point-four BILLION dollar budget includes 900 MILLION dollars worth of withdrawals from state reserves and Sand says things are going to get very ugly when that money runs out.
Republicans say they designed state reserve accounts to cover initial losses, but expect tax cuts to spur economic growth that will ultimately lead to more state tax revenue. In January, the state income tax dropped to a single rate of three-point-eight percent. A recent report shows Iowa income tax collections fell 18-point-six percent in July and August compared to the same period a year ago.
This story courtesy Radio Iowa. Full story here: https://www.radioiowa.com/2025/09/10/sand-says-iowa-income-tax-cuts-lit-fuse-on-fiscal-time-bomb/
