Senate Joint Resolution 11 would require a two-thirds majority vote from the Iowa Legislature to increase individual or corporate income tax rates, or to establish any new income taxes.
The resolution, passed 32-15, brings the measure closer to appearing before Iowa voters on the 2026 general election ballot and potentially added to the state constitution. In Iowa, constitutional amendments must be passed by the state Legislature in two consecutive general assemblies and then approved by a simple majority as a ballot measure in a general election.
As both chambers approved the proposed amendment in the 2024 legislative session, all that is left is for the Iowa House to take up the measure and pass it before the language would go to voters for final approval.
During floor debate Tuesday, GOP Sen. Rocky De Witt said Iowans have “entrusted” protection of the Iowa State Constitution with lawmakers and that the proposed amendment will improve protections for Iowans. De Witt said the state constitution is “a barrier that guarantees those folks that voted us in their freedom — and freedom from excessive taxation is real.”
“This constitutional amendment will actually strengthen that constitution,” he said. “That is our job.”
Democrats argued the measure would limit the abilities of lawmakers Iowans elected to make decisions on issues like taxes. Sen. Tony Bisignano said the measure is “tying any future legislature’s hands (more) than anything I have ever seen,” keeping lawmakers from accessing tools — particularly the ability to raise income taxes — that may be crucial for managing budget crises in the future.
The Des Moines senator said limiting income tax increases is especially devastating as the state is facing decreasing revenues while federal financial prospects remain uncertain. The governor’s budget proposal for the upcoming year fills the gap from a projected revenue shortfall, in part caused by recent cuts to state income tax rates, using money from the Taxpayer Relief Fund and other reserve funds.
“We have different philosophies in taxation, and that’s not a bad thing,” Bisignano said. “But this particular proposal is nuclear. It’s nuclear to this state into the future. And what you’ve done through your architecture is set this state up for probably one of the largest sales tax increases we will ever see.”
Senate Minority Leader Janice Weiner said the measure, by not limiting other types of government fees and fines, or taxes like property and sales taxes, will mean the state will turn to tax increases that “will all fall on the backs of working Iowans.” Democrats and advocates with groups like Common Good Iowa have argued that income taxes are more equitable than other forms of taxation, as wealthier taxpayers typically pay a higher proportion of taxes than low-income people.
“I do not like higher taxes. I also don’t happen to like unlimited budget items like vouchers,” Weiner said. "This constitutional amendment, joint resolution, does nothing to limit property taxes, sales taxes, or other government fees and fines, and that’s where politicians will have to go in the future if they fall short to balance their budgets.”
Republican Sen. Tim Kraayenbrink criticized Democrats for not considering spending cuts as an alternative to any kind of tax increases.
“Basically, what you’re saying, is if we get tight on the budget, you’re just going to right away raise taxes,” Kraayenbrink said. “You’re not going to look at what you’re spending. You’re just going to raise taxes.”
De Witt stressed that the constitutional amendment would not entirely block future lawmakers from raising income taxes, but would just require a two-thirds majority to approve an increase, a higher standard than simple majority approval currently required.
“Raising taxes on anything, I don’t care what, should be hard,” De Witt said. "The comment came up earlier, ‘What if we have a state emergency?’ What if we do? The worst thing it’s going to do is force us to work together.”
The measure moves to the House for further consideration.
This article was published by the Iowa Capital Dispatch. Read the original here.
