In this episode of ITR Live, Chris Hagenow and John Hendrickson take a deep dive into the proposed federal “Big, Beautiful Bill” —a sweeping tax and budget to extend the 2017 Tax Cuts and Jobs Act (TCJA). They explore what’s included, how it could impact Iowa taxpayers, and why federal spending policy is just as important to state-level fiscal decisions as what happens in Des Moines.

The episode starts with local stories, including Axios Des Moines’ report on housing incentives and Des Moines’ call for suburban areas to contribute more to metro affordable housing projects. Chris and John push back on the idea of taxpayer-subsidized development, highlighting how government incentives—whether for low-income housing or luxury projects—distort the free market and fuel property tax frustrations.

From there, they shift to the heart of the episode: Trump-era tax cuts are set to expire, and Congress is working on a major package to extend and expand many of those provisions. The bill includes an expanded child tax credit, increases to the standard deduction, and proposed tax exemptions for tips and overtime pay. Chris and John warn that while these carveouts may be politically appealing, they erode the tax base and complicate Iowa’s flat tax system due to the state’s rolling conformity with federal tax law.

They also dissect the politics of the SALT cap debate, a key sticking point among lawmakers from high-tax states, and outline how raising the cap to $40,000 could disproportionately benefit wealthier taxpayers in states like New York and California—undermining the incentive for state-level tax reform.

In closing, the hosts emphasize the broader lesson: neither tax relief nor economic growth is sustainable without spending restraint. With the federal government projected to spend nearly $89 trillion over the next 10 years, and only modest cuts proposed, Chris and John preview future ITR Foundation efforts to spotlight the dangers of unchecked national debt—and why every taxpayer, including Iowans, should care.