Iowa House Bill HF2418

Iowa 2023-2024 Regular Session

• Introduced: 2/8/24
• Refer: 2/8/24

Caption

A bill for an act creating a legislative tax expenditure committee to review certain tax expenditures prior to repeal or that are otherwise ending.

Impact

The bill is significant as it necessitates a structured review of various tax expenditures, promoting transparency and accountability within state financial operations. By requiring that the reasons for repealing these tax benefits be assessed alongside their equity and potential economic impact, the bill aims to foster a more reasoned approach to state budgeting and spending. This process is expected to lead to a more informed legislative decision-making framework regarding fiscal policies, thereby enhancing the state's economic planning.

Summary

House File 2418 establishes a Legislative Tax Expenditure Committee tasked with reviewing specific tax expenditures before they are repealed or when they are set to end. The committee will consist of ten members appointed by the legislative council, with a balanced representation from both the majority and minority parties. The formation of this committee aims to ensure that any discussion regarding the repeal of tax expenditures considers their overall impact and effectiveness, allowing for thorough analysis prior to legislative action.

Contention

While proponents of HF2418 argue that the committee will provide necessary oversight, critics may contend that the establishment of such a committee could slow down decision-making processes regarding tax policies. The debate may focus on the balance between scrutiny and efficiency in legislative procedures. Additionally, there may be concerns about the composition of the committee itself and the influence of partisan politics on the assessment of tax expenditures, possibly leading to disputes over which programs are deemed worthy of continual support.