ITA Principles

Resources

Basic Principles

Growth and prosperity depend on an attractive business climate to support creating jobs, expanding tax revenues and maintaining services for all Iowa citizens. Policymakers are encouraged to do all they can within state government to control spending and avoid unnecessarily increasing the tax burden of Iowans.

ACCOUNTABILITY
Government agencies and officials must be accountable and accessible to their employers-the taxpayers.

EFFICIENCY
ITA supports a performance-based budgeting process encouraging a full review of all state programs to promote funding of those programs necessary to achieve measurable results.

EQUITY
Equity requires comparable tax policies and principles for similarly situated taxpayers.

PROMOTION OF GROWTH
Tax policy must support the state's economic growth initiatives and goals.

SIMPLICITY
Tax law and administrative rules must be clear and concise to allow for cost-effective compliance by taxpayers.

STABILITY
Iowa's tax structure must be predictable and stable for both taxpayers and governments.

TAXPAYER INVOLVEMENT
Taxpayer involvement in the regulatory and legislative development process will lead to better and more thoughtful tax policy.

Guiding Principles of Sound Tax Policy

ITA has established these guiding principles of sound tax policy to assist legislators and regulators in undertaking tax reform or in making any changes to tax law.

NEUTRAL
The tax system should exert minimal impact on the spending and decision-making of businesses and individuals. 

COMPETITIVE
A sound tax structure should support our state’s economic growth initiatives and help create a good business climate. 

FAIR
The tax code should be fair and equitable. Horizontal equity is achieved when similarly situated taxpayers are treated the same. 

SIMPLE
Tax law should clearly and plainly define what taxpayers must pay and when. Statutes and regulations should be transparent and encompass ease in understanding, compliance and administration. 

CONSISTENT
Iowans deserve consistency, certainty and predictability in the tax code. A stable, diversified tax structure helps achieve a more predictable revenue flow. 

Sound Budgeting Principles

ACCURATELY determines revenue and expenses, including:
  • NOT diverting funds statutorily authorized for a specific objective to other purposes;
  • NOT shifting program funding to property taxes or fees.
ALIGNS expenses and revenue in the same fiscal year, including:

  • NOT establishing new automatic, or "standing," appropriations;
  • NOT creating multi-year accelerating commitments;
  • NOT creating new programs for a partial fiscal year.

USES one-time or time-limited revenue for one-time, not ongoing, expenses.
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