Tax Reform, Property Taxes, and Iowa’s Fiscal Future

In this episode of ITR Live, Chris Hagenow and John Hendrickson dive into two big stories shaping Iowa’s political and fiscal landscape: Randy Feenstra’s official entry into the 2026 governor’s race and Iowa’s sharp rise in national tax competitiveness rankings.The conversation opens with Feenstra’s long-anticipated announcement. Chris and John break down what the move means for the Republican field, why Feenstra is considered the frontrunner, and how his campaign message of “America First for Iowa” could play out on the state level. They question what the slogan really means in policy terms and whether Iowa voters will see it as substance or branding.The hosts then turn to the Tax Foundation’s new State Business Tax Climate Index, where Iowa jumped from 20th to 17th in overall tax competitiveness — a major improvement from its 44th-place ranking just a few years ago. Chris and John explain what that ranking means, how Iowa’s flat tax continues to boost the state’s position, and where more work is needed — particularly on property taxes.As the episode unfolds, the discussion moves from rankings to reform. The hosts preview property tax debates coming in the 2026 legislative session and emphasize Governor Kim Reynolds’ continued push to apply the same fiscal discipline that delivered Iowa’s flat tax to local governments. They also highlight the ongoing need for efficiency and consolidation among Iowa’s 99 counties and local entities to reduce costs for taxpayers.The episode closes with a spirited exchange about South Dakota’s new property tax task force and why the key to lasting relief isn’t tinkering with formulas — it’s cutting government spending. As always, Chris and John remind listeners that the solution to Iowa’s tax challenges begins and ends with responsible budgeting and smaller government.