The Iowa legislature recently passed a large tax overhaul, resulting in more than $2.8 billion in tax cuts over the next six years. There are two sides to the cuts. How much will Iowans expect to save on their next tax bill? What services might Iowans have to forfeit due to reduced tax revenues?
How much will Iowans save? According to The Des Moines Register,
- Filers with adjusted gross incomes of $10,001 to $20,000 will see an average $18 per year savings.
- Filers with incomes between $50,001 and $60,000 should save an average of $156 per year.
- Filers with incomes over $1 million should save an average of $24,636 per year.
- An “average” Iowan should save approximately $243 per year.
While there is a tax cut, there is also a tax increase – new taxes on video streaming and digital video rentals, as well as online sales tax. Iowans will pay less income tax but might pay more depending on online purchases.
What will Iowans have to give up with less money in state coffers? This year, due to mid-session shortfalls, Iowa initiated budget cuts targeted at universities, community colleges, the justice system and human services. These cuts could mean of 30 Iowa courthouses.
For an average of $20 per month tax savings, are you willing to gamble that your courthouse won’t close, willing to pay more tuition and willing to have fewer services for children and families?
Ann Fields, Knoxville
Democratic candidate for Iowa House District 28