Newspapers across the state blared the above headline Thursday
morning, as taxes will again be raised in Iowa. That's right -- over
$400 million in total tax increases, and counting, so far. The latest
measure would eliminate the local option sales tax for schools, and
replace it with a statewide penny sales tax that, for now, is devoted
to schools. Two aspects of this bill are troubling. As we have seen
time and time and time again, all too often when the governor and
Legislature get their hands on funding, it gets "scooped" for other
pet projects, especially in times of economic slowdown. Second, this
tax increase now raises the state's use tax as well. The use tax is
applied when businesses purchase goods from out of the state to use
here in Iowa.

Labels: taxes