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Iowa House, Senate tax debate heats up
With just weeks to go in the legislative session, the Iowa House and Senate are advancing competing tax relief proposals, a difference that could complicate plans for adjournment this year.

SF576, which passed the Senate 46-0, phases in the elimination of the inheritance tax. The state’s nonpartisan Legislative Services Agency predicts the repeal would reduce revenue by nearly $18 million in FY2022. The legislation would apply to deaths occurring on or after Jan. 1, 2021.
 
The bill also would remove “triggers” put in place in order for broad state income tax cuts passed in 2018 to go into effect. Those triggers ensure the state’s tax collections rise enough to offset tax cuts.
 
If the triggers are removed, the LSA predicts the tax cuts would reduce income tax liability by roughly $297 million in FY2023.
 
The House also has a bill eliminating the inheritance tax, HF841. It’s unclear at this point what a final tax package will look like before lawmakers adjourn for the year in the coming weeks. House Speaker Pat Grassley has made public statements that the House will take a cautious approach to removing the triggers.

OMAHA, Neb. (Jan. 21, 2021) – For the third time in the past four months, the Creighton University Rural Mainstreet Index (RMI) climbed above growth neutral. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the index increased to its second highest level since January 2020.

Overall: The overall index for January rose to 52.0 from December’s 51.6. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

“Recent sharp improvements in agriculture commodity prices, federal farm support payments, and Federal Reserve’s record low short-term interest rates have underpinned the Rural Mainstreet Economy in a solid and positive growth range. However, the rural economy remains well below pre-pandemic levels,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

OMAHA, Neb. (Dec. 17, 2020) – For the second time in the past three months, the Creighton University Rural Mainstreet Index (RMI) climbed above growth neutral. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy, the index increased to its second highest level in the past 10 months.

Overall: The overall index for December rose to 51.6 from November’s 46.8, but was down from October’s 53.2. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral.

“Recent improvements in agriculture commodity prices, federal farm support payments, and the Federal Reserve’s record low interest rates have underpinned the Rural Mainstreet Economy,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.
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