Larry McBurney is a Democratic member of the Iowa House representing part of Urbandale.
For years, Iowa Republicans have argued that lower taxes will attract people, businesses, and investment to the state. Governor Kim Reynolds made that case in 2022 while promoting her income tax plan, telling people elsewhere, “Come, move to Iowa.”
The results have been less dramatic than the sales pitch. Iowa’s population grew 1.5 percent from 2020 to 2025, compared with 3.1 percent population growth nationally. More notably, Iowa experienced net domestic outmigration during that period: 10,148 more people moved from Iowa to another state than moved here from another state.
At the same time, Iowa is spending more than it takes in through recurring revenue. For fiscal year 2027 (which began on July 1), the nonpartisan Legislative Services Agency projects about $8.4 billion in adjusted revenue and $9.645 billion in appropriations, with the difference covered in part by accumulated balances and a $617.8 million transfer from the Taxpayer Relief Fund.
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