Statewide, Iowa — Members of a key state panel say a recession would likely have a limited impact on Iowa’s economy.
They’re predicting state tax receipts will decline by one-point-nine percent this fiscal year due to cuts in the top income tax rate for individuals and corporations as well as the end of state taxation of retirement income. Kraig Paulsen is director of state agencies that oversee state tax collections and the state budget.
Paulsen and other members of the Revenue Estimating Conference predict the state will collect more than $10 billion in taxes during the current fiscal year, which ends June 30th. Jennifer Acton, a senior analyst with the Legislative Services Agency, is the new member of the Revenue Estimating Conference.
Action points to the October increase in the Iowa Leading Indicators Index. It includes things like diesel fuel consumption, unemployment claims and data on hours worked in Iowa manufacturing plants.
Acton, though, does say it’s an especially difficult time to predict the future.
