The Real Reason Your Tax Bill Keeps Going Up

In this episode of ITR Live, Chris Hagenow and John Hendrickson go deep on the one issue driving nearly every fiscal headache in Iowa: government spending. From the state budget being finalized at the Capitol to property tax increases across the state, this episode is a comprehensive takedown of how unchecked spending—at both the state and local level—is the real cause of Iowa’s tax burden.Chris and John start with the state budget process, which is on track to grow by over 5% this year—fueled in part by federal Medicaid obligations and education savings account (ESA) implementation. While some of the growth may be justifiable, they warn that this rate of increase cannot continue long-term without jeopardizing the hard-won flat tax reforms.On the local side, they dissect Coralville’s budget and how city leaders touted a tiny property tax levy cut—while hiking utility and yard waste fees and doubling the franchise fee. Despite all the technical language and rate adjustments, Coralville’s overall spending is still increasing, and its levy rate remains higher than many peer cities.The hosts argue that all of this complexity confuses taxpayers and protects the status quo. The real solution? Clear spending limits and transparent property tax notices. They call for the legislature to finally fix Iowa’s notification system so taxpayers can understand how much their bills are actually going up—without needing a calculator.The episode closes with a teaser for a future “Blow Up the System” episode where they’ll explore bold ideas like eliminating the income tax or replacing property taxes entirely—and whether it’s time to get serious about Utah-style reform.