Iowa
Iowa Republicans set up a shell game to mask the costs of tax cuts | Opinion
It is not “taxpayer relief” to use previously paid taxes to pay help pay for budget shortfalls caused by a “tax cut.”
This month, the state Revenue Estimating Conference reported new estimates showing Iowa revenue will drop by $602 million (6.2%) compared with fiscal year 2024. Further, state revenue is expected to drop by a further $428 million (4.7%) in fiscal year 2026, which begins July 1, 2025. Republicans attribute the fall in estimated revenue to the start of their 3.8% flat income tax rate next year. Republicans have promoted reducing the state income tax — which Sen. Jack Whitver derisively calls a “confiscation” — down to zero.
But Republicans have amassed a $2 billion budget surplus, $961 million in its reserve accounts, and $3.75 billion in the Taxpayer Relief Fund, which was supposed to be used to reduce taxes. All told, about $6.75 billion. One good question is: Why?
Republicans enacted a long-term commitment to reduced revenues due to the flax tax at an extremely volatile time during and after the COVID-19 epidemic. The federal government’s $5.2 trillion infusion into states and their economies was the largest fiscal stimulus package ever. One-time federal financial supports reduced state costs and artificially bolstered revenues. Recently, Pew Charitable Trusts observed: “The combination of temporary funds propping up budgets and the adoption of new recurring expenditures or tax cuts has left many states in a precarious position. Policymakers now must grapple with the possibility that their states’ finances are structurally imbalanced and vulnerable to deficits as one-time funds dry up but new commitments remain.”
Not wanting to “waste a good crisis,” as they say, Republicans rushed to enact a flat tax during an extremely uncertain economic time when the level of likely future tax revenues was cloudy at best.
As the COVID economic booster begins to fade, several states have experienced significant decreases in tax revenue as compared to their 15-year trend. Iowa was among states experiencing a negative difference in the fourth quarter of 2023 — mind you, before the flat income tax kicked in. Iowa experienced a 6% decrease in revenue from its historical trend, the fourth-highest difference among states that went negative, according to Pew.
Researchers explained: “State tax collections have been on a downward trajectory since their mid-2022 peak, reflecting, in large part, a decline from the unexpected highs of the pandemic revenue wave. … One question is whether states will be able to afford the budgetary commitments they made in the past three years — such as tax relief and pay raises for public employees — over the long term.”
Yet, Iowa Republicans want to enshrine their COVID-fueled tax cut into the Iowa Constitution. Last session, Republicans passed a constitutional amendment to require a two-thirds vote of both chambers of the state Legislature to pass a bill that would increase the individual or corporate income tax rate. They are expected to pass the legislation a second time this session, which would likely put it on the ballot for voters in November 2026. What a way to saddle future Iowans with a hasty tax cut enacted during a most abnormal period of artificially high revenue and reduced state expenses.
It is a sure thing Republicans will hoard Iowa’s surpluses and use it to cover predicted revenue gaps before the November 2026 vote on the constitutional amendment to mask from the voting public the true and lasting impacts of their opportunistic push for a flat tax.
In fact, Republicans and Gov. Kim Reynolds passed Senate File 2442 this year, which, among other things, changed the law regarding how the Taxpayer Relief Fund could be used. Tucked away in the second-to-last division of a 35-page bill is a section that provides that, if the actual net revenue is less than budgeted expenses “there is transferred from the taxpayer relief fund to the general fund of the state an amount equal to fifty percent of the difference or the remaining balance of the taxpayer relief fund, whichever is lower.” That is a preemptive coverup of the probable result of the Republican flat tax as conceded by Republicans, themselves.
Iowa Republicans are not using the Taxpayer Relief Fund as it was originally intended. It is not “taxpayer relief” to use previously paid taxes to pay help pay for budget shortfalls caused by a “tax cut.” Most would call that a shell game. It is like giving yourself a “raise” by moving a dollar from one pocket to another. Why not just give those “confiscated” funds back to Iowans directly via refunds? Ah, but that would spoil the game, wouldn’t it?
Unmet needs and underfunded state accounts exist now. That will get worse.
Governor Reynolds states Republicans have a “commitment to shrinking the size and scope of government.” However, should not elected officials be committed first to ensuring that our government is the “right size,” before deciding it should be shrunk? That is, the right size to fully accomplish basic functions that individuals cannot meet themselves —no matter how much of their own money they have in their pockets — such as prevention and mitigation of natural disasters, ensuring safe bridges and roads, making sure promised pensions are not underfunded, cleaning up Iowa’s fouled waters, and helping public schools at least meet their costs of operation.
Tom Walton is an Iowa lawyer.
Tate Schendel on Waukee Northwest boys soccer’s win over Urbandale
Hear from Waukee Northwest goalkeeper Tate Schendel after the Wolves beat Urbandale in the Class 4A boys soccer state semifinals.
It took two overtimes and six penalty kicks to decide a winner in Waukee Northwest’s Iowa high school boys soccer state quarterfinal matchup against Johnston on Monday.
And it looked like the semifinal would go the same way, that is, until Eman Alicic came up big on a penalty kick in the final minutes of the No. 2 Wolves’ state semifinal game against No. 3 Urbandale on Wednesday, June 3.
“It was too long of a game last time,” joked Northwest goaltender Tate Schendel postgame. “From now on, we’re just going to try to close things out, get it done and keep moving on.”
It took more than 10 minutes for either team to record a shot, and even longer for an attempt to go on goal.
The Wolves hammered a dozen shots in the direction of Urbandale’s goal in the opening 40 minutes, but only a couple came close to going in – including a shot from Alicic that bounced out after hitting the corner of the crossbar.
The J-Hawks had fewer chances at the net, but more attempts hit the target. Of Urbandale’s seven first-half chances, four were on goal – and Schendel stopped all of them.
With one defense keeping shots on goal away from their keeper and the other team’s goalie stepping up to make risky saves, Northwest and Urbandale headed to the locker room tied, 0-0, at halftime.
“He’s been with us now for three years as a starter, and each year he’s come up big and done great things,” Waukee Northwest head coach Carlos Acebey said about Schendel. “I don’t think he gets a lot of credit for how well he plays between the goalposts, and he’s a solid player for us.”
The Wolves took control in the second half, firing off 12 more shots – including seven on goal – to Urbandale’s three shots, only one of which made its way into Schendel’s hands. But despite Northwest’s ability to keep much of the pressure on the J-Hawks’ end of the field, the game remained scoreless deep into the second half.
With just under four minutes remaining in regulation, Eddie Mihura won the ball around midfield, and then Alicic sent a cross-field pass that was misplayed by one of Urbandale’s players and made its way to Sully Ervin.
He took the ball downfield on a breakaway, but didn’t get a chance at the net, as a J-Hawks player took him down in the box, resulting in a penalty kick.
“He’s just a little buzz saw,” Acebey said about Ervin. “He creates a lot of problems just because he’s annoying, but he’s a great annoying for us. I love it.”
Alicic – the sophomore star and leading goal scorer on Northwest’s roster – lined up for the penalty kick and nailed it, sending the ball left as Urbandale’s goalie dove to the right.
“He’s really wiser than people give him credit for,” Acebey said. “He’s a sophomore, but he’s very intelligent. His soccer IQ is off the charts. He’s a player that gives us a lot of confidence…and the last three teams that we played have tried to double team, triple team him, and he still is going to get the ball.”
The J-Hawks attempted to get another chance at a goal in the final minutes of the game, but Northwest had an answer for everything Urbandale tried. The final horn bellowed, and the Wolves celebrated their first trip to the championship game since the program’s inaugural season in 2022.
Northwest will face off against No. 1 Ankeny Centennial – still undefeated – at 2:30 p.m. on June 5 at Mediacom Stadium.
Alyssa Hertel is the college sports recruiting reporter for the Des Moines Register. Contact Alyssa at ahertel@dmreg.com or on Twitter @AlyssaHertel.
Iowa
Zach Lahn projected to win Iowa GOP governor primary, upsetting Trump’s pick in a state Democrats hope to flip
Zach Lahn will win the Republican primary for Iowa governor, CBS News projects, overcoming a Trump-backed congressman and setting up a November contest against Democrat Rob Sand that could be one of this year’s most competitive gubernatorial races.
Lahn — a farmer and businessman who has touted his ties to the “Make America Healthy Again” movement — prevailed over a crowded GOP field on Tuesday. Sand, who serves as state auditor, ran for the Democratic nomination unopposed.
His victory bucks the recent winning streak of Trump-backed candidates and marks an upset over Rep. Randy Feenstra, who didn’t attend any primary debates and was viewed by many observers as a frontrunner. President Trump endorsed Feenstra last week, calling him “MAGA all the way,” and several top Iowa GOP figures backed him.
Feenstra conceded late Tuesday night, saying in a speech surrounded by his family that the outcome “wasn’t what I wanted.”
Describing himself as a sixth-generation Iowan, Lahn owns a family farm and runs the agriculture, real estate and technology investment firm Homeplace Ventures. He previously worked for the conservative group Americans for Prosperity. He’s running on a populist-inflected platform that he branded “Iowa First” and has said he wants to boost local ownership of farmland, stem the flow of younger Iowans out of the state and address Iowa’s high cancer rate.
“I fear every day we are losing the Iowa we love,” Lahn said in his victory speech Tuesday, castigating out-of-state investors that he says “treat Iowa land like it’s a commodity instead of our inheritance.”
Lahn was endorsed last year by MAHA Action, a group founded by allies of Health and Human Services Secretary Robert F. Kennedy Jr., and he picked up support from the late Charlie Kirk’s Turning Point Action last week. He was also endorsed by former Rep. Steve King, who was known for incendiary comments about race before Feenstra ousted him in a 2020 primary.
Three other candidates also ran: former Iowa Department of Administrative Services Director Adam Steen, state Rep. Eddie Andrews and former state Rep. Brad Sherman.
Lahn will now face Sand, a two-term state auditor who defeated a GOP incumbent in 2018 after working in the state attorney general’s office.
Sand has focused his campaign on government accountability and faulted Republicans for the state’s economic issues, while pitching universal pre-K and criticizing a school voucher program introduced by GOP officials. He has also sought to cultivate a moderate image on social issues, as Republicans try to cast him as a liberal in centrist’s clothing.
In a campaign video late Tuesday, Sand said Republican voters are “welcome in this campaign,” adding that the state’s political system is “broken” and “all you would get with Zach Lahn it is more of the same.”
Once considered a swing state, Iowa has trended sharply red in recent years as Democrats increasingly struggle on rural Midwestern terrain. Mr. Trump won the state three times in a row, including by a 13-point margin in 2024, and GOP Gov. Kim Reynolds won reelection by 18 points four years ago. Iowa hasn’t elected a Democratic governor in two decades, and Sand is the only statewide elected Democrat, after he won reelection by fewer than 3,000 votes in 2022.
But Democrats are hopeful that a challenging political environment for Republicans, both nationally and in Iowa, could make them more competitive in the midwestern state. The Cook Political Report has rated the Iowa gubernatorial race a tossup, one of five states with that distinction this year, and the University of Virginia’s Center for Politics says the race leans red.
Reynolds — who has led the state since 2017 — has one of the lowest approval ratings of any governor nationwide. Iowa farmers also struggled last year after the trade war with China caused Beijing to cut American soybean imports, pushing down prices of one of Iowa’s most widely grown crops, and the war with Iran has caused a run-up in fuel and fertilizer prices.
Reynolds declined to run for reelection this year, setting up Iowa’s first gubernatorial election without an incumbent in the race since 2006.
Lahn lent his campaign $2 million last year, but is heading into the general election at a fundraising disadvantage. His campaign had just over $700,000 on hand as of mid-May, compared to nearly $18.3 million for the Sand campaign. Sand’s wife runs a sizable food and health products company founded by her family called the Lauridsen Group, and the Democrat’s campaign coffers have been bolstered by millions in contributions from his in-laws.
Sand raised about $9.7 million between the start of the year and mid-May, just over $3 million of which came from members of his wife’s family. Lahn raised just under $1 million.
Beyond the governor’s race, Iowa also has an open Senate contest after Ernst declined to seek reelection, drawing interest from Democrats, though Republicans likely have a sizable edge. Democrats are also heavily targeting two of Iowa’s four House seats, including the 1st District, where incumbent GOP Rep. Mariannette Miller-Meeks won by fewer than 1,000 votes in 2024.
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