From Surplus to Success: Iowa’s Fiscal Foundation in Focus

In this episode of ITR Live, host Chris Hagenow and Policy Director John Hendrickson dive into key developments shaping Iowa’s governance and tax policies. The discussion kicks off with the appointment of Iowa’s new Lieutenant Governor, Senator Chris Cournoyer. Known for her work on state realignment and efficiency, her appointment reflects a commitment to streamlining government operations and ensuring readiness for leadership transitions.

Next, the hosts break down the December Revenue Estimating Conference (REC) report, which projects lower income tax revenue due to ongoing tax reforms. While critics have raised concerns, Chris and John explain why this decline is intentional and reflective of conservative budgeting practices. They highlight how Iowa’s fiscal health—including a strong Taxpayer Relief Fund and growing sales tax revenue—ensures that the state can meet its obligations while allowing Iowans to keep more of their hard-earned money.

The discussion then moves to the release of the 2025 income tax withholding tables, which will show Iowans the immediate benefits of the new 3.8% flat tax. For many taxpayers, this means more money in their paychecks starting January 1st, 2025. Chris and John emphasize how these tangible results demonstrate the success of pro-growth tax reforms in making Iowa a leader in fiscal policy.

Finally, the episode wraps up with a broader conversation about tax reform and the upcoming legislative session. The hosts stress the importance of maintaining conservative budgeting principles, prioritizing property tax reductions, and streamlining government to ensure efficient use of taxpayer dollars. They also reflect on Iowa’s national leadership in tax policy and its potential as a model for other states.