In October 2025, Brad Sherman suggested a “big” sales tax proposal to replace property taxes. Since Iowa lowered their flat income tax in 2024, a sales tax increase would shift more of the tax burden onto everyday purchases and lower-income Iowans.
Iowa’s tax cuts shifted benefits to the wealthy while leaving working families paying more and local governments struggling with underfunded services, revenue gaps, and pressure to cut core programs.
October 2025: Brad Sherman Suggested A “Big” Sales Tax Increase To Replace Property Taxes. According to an interview with Iowa Press Sherman said “I would love to see no property tax. I would be it'd be great, but I don't know there's a way to fund our essential services. You know, if we were to cut out all property taxes, how do you do that? There's only two ways you could do that. One you could do a sales tax, and the other would be an income tax. The only two first two that come to my mind, and we've been cutting income tax so, so that's something we probably shouldn't look at right now, but if a sales tax to replace a property tax elimination, first, it would be a big sales tax.” [Iowa Press, 10/17/25] (VIDEO)
Tax Policy Center: The Burden Of Sales Tax Falls On Lower-Income Households Because They Spend A Greater Share Of Their Income. According to the Tax Policy Center, “Because lower-income households spend a greater share of their income than higher-income households do, the burden of a retail sales tax is regressive when measured as a share of current income: the tax burden as a share of income is highest for low-income households and falls sharply as household income rises. The burden of a sales tax is more proportional to income when measured as a share of income over a lifetime. Even by a lifetime income measure, however, the burden of a sales tax as a share of income is lower for high-income households than for other households: a sales tax (like any consumption tax) does not tax the returns (such as dividends and capital gains) from new capital investment and income from capital makes up a larger portion of the total income of high-income households.” [Tax Policy Center, 1/24]
HEADLINE: “Iowa’s Big Tax Cut For The Rich Already Straining State Services” [Center On Budget And Policy Priorities, 11/11/24]
2024: Center On Budget And Policy Priorities Found Iowa’s Tax Cuts Created A Revenue Gap That Threatened Medicaid, Universities, And Core Services. According to the Center on Budget and Policy Priorities, “While cutting taxes, Iowa has underfunded services, budgeting only about 80 percent of available resources for four straight years. […] Lower-income residents will face the brunt of reduced funding for public services, education, and health programs as the state shifts resources to fund tax cuts for the wealthy. For example, the projected $517 million revenue gap this year alone could have covered almost a third of the state cost of Medicaid or nearly all of the state’s spending on its three flagship universities. Already, health care and student tuition are big challenges for families. Now, Iowa will need to find alternative sources to make up these funds or consider cutbacks in critical services for families and communities.” [Center On Budget And Policy Priorities, 11/11/24]