A great response to Yepsen on tax rates

When I see that David Yepsen has written another column about Iowans being over-taxed, I usually don’t get past the first couple of paragraphs. These columns show up a few times a year, whenever Yepsen gets hold of a press release from some right-wing think tank. I figure, I know what he’s going to say without reading the whole piece.

But fortunately, West Des Moines resident John Norwood actually read Yepsen’s latest column on the subject (link no longer available on the free portion of the Register website) and put together a devastating rebuttal that appeared in the Des Moines Register’s Sunday edition:

David Yepsen’s April 17 column once again beats the drum that somehow Iowa’s state and local tax burden is driving our state to ruin (“Lighten Growing Tax Burden”). We’re a state with the 18th-highest tax burden in the nation.

Having grown up in Massachusetts and later having lived 10 years in the San Francisco Bay area, two of the country’s most expensive areas, I have trouble reconciling my personal experience with the conclusions of the Tax Foundation that Yepsen cites.

Even if we take the Tax Foundation report as gospel, the chart presented next to Yepsen’s column notes that there is really very little difference between the 44th most-taxed state, which is South Dakota at 9 percent, and Iowa, which comes in 18th at 11 percent.

The variance in state rates is actually pretty narrow across most of the distribution. Move to Missouri, save 0.9 percent and you’re in the driver’s seat at 34th.

How many Iowans, who have access to superior education and other community services, are ready to leave for South Dakota or Missouri for that 1 percent to 2 percent difference? There’s an old saw, Yepsen, “You get what you pay for.”

Iowa is doing pretty well, if you ask me.

– John Norwood,

West Des Moines.

The idea that anyone is deciding where to live based on a 1 or 2 percent difference in tax rates is laughable. Thanks to the letter-writer for spelling out why.

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desmoinesdem

  • I want to know where are we supposed to get our money?

    Republican complain that property taxes are too high, commercial property taxes are too high, sales taxes are too high.  Well then, where are we supposed to get the money for education, roads, and other services?  I don’t like money being wasted by anyone, it doesn’t matter if it is CIETEC, our universities, or anywhere else.  But the taxes we pay are investments in our future and in services people use.  Until you can tell me how to fund these, then stop complaining or pack your bags.

  • It goes for Google, too

    People don’t move to another state for small tax differences.  Corporations don’t build plants in a certain state for small tax bribes.  Hollywood films don’t pick locations for filming based on tax codes.

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