Republicans aim to take away future choices

Iowa is operating at a deficit and reserves have been depleted. Republican legislators remain unconcerned, saying this was predicted and will reverse in a year or two. But nobody has explained why revenues will increase so significantly, other than magic, supply-side wishful thinking.

Kansas offers a warning of what is more likely. In 2012 Kansas sharply lowered its tax rates and quickly saw devastating consequences in financial ratings, educational outcomes, cuts to public services, etc.. In response legislators passed tax increases and a new governor was elected in 2017.

Unless Iowa’s tax revenues significantly increase, our reserves could bottom out in three years. How likely is that big turnaround? The Philadelphia Federal Reserve ranked Iowa’s economic growth 25th a year ago; this year we dropped to 50th. Wallet Hub ranks Iowa in last place for economic activity.

If Senate Joint Resolution 11, currently in the Iowa House Ways and Means committee, passes, we will vote in November on a proposed constitutional amendment requiring approval by two-thirds in both House and Senate for any future income tax increases. If this passes, it will be almost impossible to reverse course; only 17 Senators could hold up changes to improve our state’s finances.

This bill is unnecessary and should be voted down. If our revenues increase, we simply retain the lower tax rates. But if bankruptcy looms, we need the option of correcting our mistakes. I’d suggest some caution; why take away future choices that just might be necessary?

Sue Ravenscroft

Ames