Tax Reform

Jonathan Williams and John Hendrickson: Iowa Tax Cuts Will Work with Lessons Learned from Kansas

ALEC Executive Vice President of Policy and Chief Economist Jonathan Williams joined John Hendrickson of the Tax Education Foundation of Iowa in an op-ed for the Des Moines Register, refuting many myths of the Kansas tax reform story and detailing how Iowa’s tax reforms will work when combined with sensible budget reforms.

The real lesson to be learned from Kansas’ experience, or with any tax reform, is that spending must be prioritized. As financial management 101 reminds us: Increasing spending, along with cutting taxes will lead to a budget shortfall. This is what occurred in Kansas when the Legislature increased spending by more than $430 million in the same year it cut taxes. It is imperative that policymakers look at ways to reduce costs, eliminate waste and prioritize government spending when considering lowering tax rates.

Read the rest of the op-ed here.

In Depth: Tax Reform

Mainstream economists, small business owners and taxpayers across the country understand that growth-oriented reforms mean increased opportunity for all. As demonstrated by the annual Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, sound tax and fiscal policies are critical to economic health, allowing businesses and households to flourish. A…

+ Tax Reform In Depth