DES MOINES, Iowa – Iowa’s economy continues to move forward in terms of revenue amid national recession fears. This means that funds from the collected taxes continue to flow into the state coffers.
“The economy is supporting the state with increasing revenues, which seems to indicate how strong it remains,” said Kraig Paulson, chair of the Revenue Estimating Conference. “There is still work to be done, but the state of Iowa is in an incredibly strong financial position tonight.”
While Iowa and much of the country has staged a comeback from the pandemic, part of the US economy has stalled on inflation and fears of a recession.
“Despite much press coverage pointing to an impending recession, Iowa currently shows no sign of it based on tax receipts, Iowa employment and wage earnings,” said Holly Lyons of the Legislative Service Bureau.
According to David Underwood, a citizen member of the panel, some Iowa companies have been looking for new workers for so long that they can no longer offer more money.
“Everyone just sits back and says I can’t find it anymore,” Underwood said. “It’s really discouraging to see, but they’ve almost given up because they can’t find the workers who are willing to show up for work every day.”
In the last session, the legislature voted to join the governor on tax cuts and reducing the state income tax for seniors. This is expected to reduce government revenue by $570 million in 2023.
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