Last week the Tax Foundation released its 2014 State Business Tax Climate Index, which has Iowa ranked at 40th in the nation. This is a slight improvement from last year’s Tax Climate Index which had Iowa ranked at 42nd nationally.
The Index looks at five factors when calculating a state’s business climate. These factors are:
- Corporate Tax
- Individual Income Tax
- Sales Tax
- Unemployment Insurance Tax
- Property Tax
Iowa’s ranks in those 5 categories are as follows:
This low ranking is evidence that Iowa needs to reform it’s tax code. Last session, Republicans in the Iowa House passed a property tax bill that will be the single largest tax cut in Iowa history, but the work is not done yet. House Republicans will continue to work to reduce Iowan’s tax burden and put more money back in the pocket of the hard-working taxpayers.
To read the Tax Foundation’s full report, click here.