Guiding Principles of Sound Tax Policy - Iowa Taxpayers Association

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. 

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