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New Tax Package To Provide Relief To Iowans

On Friday, Gov. Kim Reynolds and Iowa House and Senate leadership announced they have reached an agreement on the largest tax relief and reform package in the state’s history. The package will prioritize hardworking middle class families, reduce rates and eliminate federal deductibility, making Iowa’s tax code more competitive and transparent. It will also simplify the tax code, ensure fairness for Main Street businesses in the modern economy and protect budget sustainability for future years. The new package is expected to provide Iowa families and small business owners with about $398 million in income tax relief in 2019. There will be an immediate average tax reduction of nearly 10 percent and then continued relief beyond 2019. When fully implemented in 2023, the plan will reduce the number of individual income tax brackets to four, with a top rate of 6.5 percent and the top corporate rate will be lowered to 9.8 percent. A single taxpayer with no children making $25,000 will see a 22.3 percent reduction, a single taxpayer with one child making $48,000 will see a 25.8 percent reduction and a couple with two children making $75,000 will see a 25.7 percent reduction. “These tax cuts are meaningful to Iowans making tough decisions about what they can and cannot afford,” Reynolds says. “I commend the Iowa House and Senate for sharing in my priority of putting Iowans first.”

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