No matter the season, there’s always something just around the corner! Before you know it, it’s Thanksgiving, then Christmas, and then we’re ringing in the New Year. After that, St. Valentine swoops in, ready to shoot arrows of love straight into our hearts. But just when the warm fuzzies of February start to fade, you can feel a shift—like someone’s lurking in the shadows, hand out, waiting to grab your hard-earned cash. It’s the dreaded tax season!

What Comes After Valentine's Day?

Tax time is just around the corner, and you know what that means—Uncle Sam and Aunt Iowa are ready to collect their fair share to keep the lights on! Family, am I right? It’s that time of year when we all get to show our love by giving a little back!

What Tax Bracket Are You In?

If you’re living in Iowa starting in 2025, get ready for a tax shake-up—no more tax brackets! Thanks to Iowa Senate File 2442, which passed in May 2024, Iowa is jumping on the flat tax bandwagon.

You’ll be in good company with states like Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Kentucky, Michigan, Mississippi, New Hampshire, North Carolina, Pennsylvania, Utah, and Washington. They’re all switching to a flat tax when it kicks in on January 1, 2025. It’s like a tax party, and everyone’s invited!

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What is a flat tax?

According to Wikipedia, here's a rough interpretation of what they said:

A flat tax is basically a tax where everyone pays a single rate on their taxable income. Think of it as the “one-size-fits-all” approach to taxes—after you take out any deductions or exemptions.

Now, here’s where it gets interesting: it’s not always as straightforward as it sounds! Sometimes, it can feel a bit like a game of hide-and-seek with your money. If there are exemptions, it might end up being a little progressive (where higher earners pay more). On the flip side, if there’s a cap on how much can be taxed, it can get regressive.

There are all sorts of tax systems that get slapped with the "flat tax" label, even if they don’t look much alike. The main thing that ties them together? They all have just one tax rate other than zero, because, you know, that wouldn’t be very taxing at all. So, instead of a confusing buffet of tax rates, it’s like picking one flavor of ice cream—simple, straightforward, and hopefully delicious! Doubtful on delicious but one can hope, right?

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Iowa's Flat Tax

Iowa’s new law is bringing a flat tax of 3.8 percent for everyone, no matter how much you earn! Starting with the tax year 2025, as confirmed by Iowa's IDR, there won’t be any tax brackets. So, get ready for a simpler tax season where everyone pays the same rate—just 3.8 percent across the board!

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What are the Pros and cons of the Flat tax?

Pros:

  1. Simplicity: Imagine a tax system so straightforward you could explain it to your cat! With a flat tax, everyone pays the same percentage, so it’s easy-peasy to understand and file.
  2. Transparency: No more sneaky tax mysteries! You know exactly what you owe the State of Iowa, making it feel like you’re all playing on the same team—Team Iowa Taxpayer!
  3. Encourages Compliance: With a simpler system, folks might be less likely to play hide-and-seek with their taxes. Less evasion means more revenue—yay for everyone!
  4. Economic Growth: Think of it as giving everyone a little extra cash to splurge on tacos or that new gadget they’ve been eyeing. More disposable income could mean more spending, and who doesn’t love a good taco? Mmmmm, tacos! Now you've got me distracted, stop that!
  5. Fairness: Everyone pays the same rate! It’s like the tax system equivalent of “all for one and one for all”.

Cons:

  1. Regressive Impact: Here’s the catch: a flat tax can hit lower-income people harder. They end up paying the same percentage as the big earners, which can feel like being asked to share your fries with someone who ordered a whole meal.
  2. Reduced Revenue: If the flat tax rate is too low, it could mean the government’s wallet gets a bit lighter. Less cash for Iowa roads, schools, and that fancy new playground everyone wants!
  3. Loss of Deductions: Say goodbye to those sweet tax breaks! Transitioning to a flat tax often means losing deductions, which can sting for families or low-income earners.
  4. Limited Progressivity: This system flattens out the progressive nature of taxes, where higher earners pay more. It could end up widening the gap between the haves and have-nots—no one wants to be that guy at the party with nothing to share!
  5. Implementation Challenges: Switching to a flat tax is like trying to change the rules of a game halfway through. It can get messy and political, and you might need a map to navigate the chaos!

So, there you have it! A flat tax can sound great in theory, but like most things, it’s not without its quirks and challenges.

Iowans Name Their Favorite Small Town Restaurants

I asked Iowans on Facebook what their favorite small town Eastern Iowa restaurant is, and there were some great suggestions! According to Google, a town is considered "small" when it has 5,000 people or less. Our list includes restaurants in towns that have a population of 7,000 or less, and some of them have MUCH less! Here are 20 recommendations from folks in Eastern Iowa:

Gallery Credit: Courtlin

Photos of The Iowa Hawkeyes Vs. Troy Trojans September 14, 2024

The Iowa Hawkeyes defeated the Troy Trojans, 38 to 21, on September 14, 2024. I took these pictures with my first press pass, thanks to U of I. After reviewing over 3,000 pictures I think these are decent enough to share. I hope you enjoy them.

Gallery Credit: Sloppy Joe

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