Interview: AFP-Iowa State Director Drew Klein Discusses the Future of State Tax Reform in Iowa

Jan 31, 2018 by AFP

AFP-Iowa State Director Drew Klein recently joined WHO Radio’s Simon Conway to discuss Gov. Kim Reynold’s Condition of the State address and the future of tax reform in Iowa.

Klein stated that Gov. Reynolds’s address “highlighted issues that needed to be talked about.”

Gov. Reynolds stated that personal income tax reform needs to happen this year — otherwise Iowans will see a tax increase in 2019.

Klein doubled-down on the governor’s mention of tax reform, stressing the need to reform Iowa’s current tax system to help Iowa’s economy and make Iowa a more competitive state:

[Iowa is] below the national average and lagging in the growth curve. We shouldn’t be. [Tax reform isn’t] the only thing that will change that, but it is a sizable part of the puzzle. States that are truly growing have a more competitive tax environment.

We can make up excuses and compare ourselves to states like Florida [that have] better tax environments. It’s not just southern states doing well – you have plenty of states that have four seasons and cold weather that are finding new ways to still attract a new generation of businesses, large and small and the families that will continue that growth into the future.

He also discussed why the legislature should focus on education freedom policies:

We have got to make some fundamental changes to the K-12 system. At the heart of that is improving school choice. If you look across the country, the states that are seeing the greatest improvements in student achievement, the parents in those states have a menu of options and have more choices with where best to send their kids.

When asked about the importance of enacting corporate tax relief, Klein stated:

Right now, on paper, [Iowa] is the worst place for them to [relocate or expand their business]. It’s not a good practice that Iowa would continue to try and make up for that by throwing more money [at corporations through corporate welfare]. We shouldn’t be picking winners and losers in our economy: we should be creating a better tax environment. The sooner we do that, the sooner we’ll realize the benefits. I would hope we can accelerate that.

…

What we really need to do is put pressure on our lawmakers. Go to www.afpiowa.com, take action and let your lawmakers know that this is the year for tax reform and let’s make it bold.

This year, Iowans have a tremendous opportunity to jump-start our state economy by enacting regulatory and tax reform. Removing barriers to growth in these areas will alleviate the burden on farmers and small businesses owners while helping make our state a more attractive place to live and work.

Listen to the full interview here.