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Iowa tax cuts could save families money

Typical family of four could see an extra $7 on paychecks

Posted: May. 14, 2018 8:29 PM

MASON CITY, Iowa - Iowans could soon see more money back into their paychecks.

A tax cut bill that is estimated to save $2.8 billion in income taxes is currently awaiting Governor Kim Reynolds' signature.

For a typical family of four, an estimated $7 would be saved through these cuts, and middle-class families could see anywhere between $86 and $257 in cuts by next year.

For Des Moines resident Brenda Shelton, the extra money coming back will help with her two sons' college educations, as well as 401K plans.

"It would be helpful for any of that, helpful for any monthly expenses, college coming up...," Shelton says.

Despite a seemingly low return amount, Shelton says it's worth it in the long run.

"I think it is fabulous, for everyone in Iowa, and any surrounding state that would do so. A dollar's a dollar and everything helps," Shelton adds.

Some of the cuts will take effect next year, though some benefits like allowing teachers to deduct classroom expenses will start sooner. However, because of the cuts, the state's budget will shrink by 4% by 2021.

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