Tax cuts for typical Iowa family could yield $7 a paycheck

Des Moines, Iowa (AP) – Most Iowans can expect to see savings from $2.8 billion in income tax cuts awaiting Iowa Gov. Kim Reynold’s signature.

The tax cuts will funnel money to the highest-earning Iowans and give a boost to businesses, but 93 percent of middle-class families will see some savings as well.

A typical family of four would save about $7 per paycheck. Middle-class families in Iowa can expect to see cuts between $86 and $257 next year.

About 40 percent of the tax cuts will benefit the top 4 percent of Iowa taxpayers. The bottom half of Iowans will receive about 7 percent of the overall savings.

Most of the savings will appear in Iowa’s paychecks, because of lower rates for withholding. More is expected to be paid in refunds, too.


Associated Press

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