The State of Iowa is transitioning, for better or for worse, to a low-or-no income tax state.
IowaSeeds is here to share information about these changes and inspire Iowans to invest their tax savings within the State of Iowa.
Tax Cuts for TY 2024
Tax Hikes for TY 2024
Taxes as Seeds
One way to look at income tax is that the state takes a portion of each individual’s harvest as seeds to plant the next year’s crops. This is the biblical concept of a tithe, but it’s analogous here too.
As the state’s income tax rates decline, from a top marginal rate of 8.98% in 2018 to a flat rate of 3.9% in 2025 (0% for retirees), the state will no longer be investing those funds into the state. Rather than the state collecting those seeds, individuals will be able to choose how - and where! - to use those funds.
There’s much discussion of how the government should use the tax funds to invest in the state - or plant future years’ crops - and of the right tax rates to balance growth. But one thing is clear: When the state collects and spends tax dollars, the lion’s share dollars are spent within the State of Iowa.
#IowaSeeds
This newsletter - #IowaSeeds - is here to draw attention to these changes and inspire Iowans to invest their tax savings within the State of Iowa.
We hope to build a community of commitment to investing within the State of Iowa and share our celebrations of those investments.
We intend to focus on how individuals are investing within Iowa and be neutral as to how those funds are invested. We will share examples of contributions to non-profits and community projects alongside investments in deposits in Iowa banks or other financial institutions in Iowa.
It’s not intended to be about politics - to influence tax rates up or down. #IowaSeeds is a movement of people who are planting the seeds of a positive future within the State of Iowa.
Call to Action!
We hope you will subscribe to the newsletter, share your stories far and wide under the hashtag #IowaSeeds and comment below to share your experiences.
Look out for are next newsletter with stories about how Iowans are investing their tax savings in our state’s future. Thanks for reading!
Mary Russell lives in Iowa City. She attended the University of Iowa College of Law where she worked as a tax law research assistant to Professor Larry Ward. She created #IowaSeeds to demystify Iowa’s income tax changes and to inspire Iowans to take an active role in shaping the state’s future.
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