Prairie Dog

From the June 2026 edition of The Prairie Progressive, Iowa’s oldest progressive newsletter. The PP is  funded entirely by reader subscription, available in hard copy for $15/yr.  Send check to PP, Box 1945, Iowa City 52244. Click here for archived issues

by Pam Mackey Taylor

In November, Iowa voters will decide if they want to enshrine in the state constitution limitations on raising income taxes.

The constitutional amendment would require a two-thirds majority of both chambers of the legislature to pass any income tax increases. Interestingly, the legislation would not require a similar super-majority to reduce income taxes.

This is a high hurdle to jump in the event that the state needs to increase revenue. A simple majority should be adequate to pass an income tax increase. A two-thirds majority requirement would allow a minority of legislators to control the tax policy of the state, instead of the majority of legislators.

We have been dealing with two years of billion-dollar budget deficits. The state is using one-time money in the taxpayer relief fund to make up the difference. It is precarious to use the reserve funds for on-going expenses. At the current rate, the taxpayer relief fund will soon run short of funds, perhaps within a couple of years. That time will be a day of reckoning – cutting budgets, laying off people, cutting programs and services, or raising revenue.

This constitutional amendment would effectively tie the hands of future legislatures in how they are going to handle the state’s finances when the revenues are not meeting the expenses, when the reserve funds are drained, and when the public expects the services that they are getting, wanting, or needing from state government to be met and cannot be paid for with existing revenues.

With respect to raising revenues, the choices are limited—income tax, sales tax, fees for services. Income tax may be the best choice since it can target those who are most able to pay with a graduated income tax or with a surcharge. Sales tax is under pressure every year from entities who want to be exempted from collection of the tax. Further, sales tax is regressive in that it has a greater adverse impact on lower income families and working families.

When voters read and think about this proposed constitutional amendment, they should also see bright flashing red lights that say stop, beware, tread carefully. And they should vote no at the polls in November.

This constitutional amendment is not needed. It does not move our state forward. It does not fix things that are broken. But it could significantly break things should Iowa face a shortfall in revenue and no way to fund services Iowans expect and need. Now it is up to the voters to decide in November.

—Pam Mackey Taylor is the lobbyist and Director of the Iowa Chapter of the Sierra Club.