Requiring super-majority for income tax increases

April 24, 2026

Proposed constitutional amendment handcuffs future income tax increases

The legislature is considering a bill that would enshrine in the state constitution limitations on raising income taxes plus enshrine in the constitution a flat tax for individuals. 

The constitutional amendment would require a two-thirds majority to pass any income tax increases.  This is a high hurdle to jump in the event that the state needs to increase revenue.  A simple majority should be adequate to pass an income tax increase.  Interestingly, the legislation would not require a similar super-majority to reduce income taxes.  This would allow a minority of legislators to control the tax policy of the state, instead of the majority of legislators.

This amendment is unnecessary and could have major implications on enshrining an unfair regressive tax system onto the shoulders of everyday Iowans.  Income tax is the fairest tax since it can be set up to have the higher taxes applied to incomes that are most able to pay the taxes.  

Future legislatures may want to make the income tax more fair for all tax payers.  Over the years, there have been numerous successful efforts to shift taxes onto sales tax and away from income tax and to lower the top tax brackets, which has a greater adverse impact on lower income families and working families.  One of the problems with our income tax system is that the system is fraught with loopholes, tax credits, and tax exemptions. 

Adding to this are efforts to significantly reduce income taxes, leading to a flat tax, and even efforts to eliminate the income tax.

If we have underestimated the amount of tax money that the state's economic activity generates, we may want to increase the income tax rates in order to pay for the services Iowans need, expect, and want from state government.  It makes no sense to have a super-majority requirement for increasing those taxes.

If the revenues are not adequate to pay for the existing programs, then the state will be required to gut the programs that are being funded and may even lay off staff.

There may be a time when increased revenues are needed - taking care of a disaster or a need for some special program.  And more significantly, if the tax cutting that has been happening and is contemplated results in far less revenue than is predicted, the citizens of the state may clamor for tax increases.

The net result from this constitutional amendment will be shifting tax collection to sales tax, property tax, fines, and fees.  Sales tax is under pressure every year from entities who want to be exempted from collection of the tax.

This constitutional amendment is not  needed.  It does not fix things that are broken.  It does not move our state forward.  Therefore, we encourage our legislators to oppose this bill.

Note: A constitutional amendment has to be passed by two consecutive legislative sessions (a legislation session lasts two years, starting the January following a general election) plus a vote at the next general election – a process that requires at least three years.  This bill has already passed one legislative session - in 2024 - and it has passed the senate a second time in 2025.  The next phase is the Iowa House.

What you can do

 
Iowa Capitol, by Kacey Carpenter