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.

Article Comments

Mason City
72° wxIcon
Hi: 74° Lo: 60°
Feels Like: 72°
Albert Lea
Scattered Clouds
73° wxIcon
Hi: 75° Lo: 58°
Feels Like: 73°
Scattered Clouds
73° wxIcon
Hi: 76° Lo: 59°
Feels Like: 73°
Charles City
Broken Clouds
70° wxIcon
Hi: 74° Lo: 61°
Feels Like: 70°
69° wxIcon
Hi: 73° Lo: 57°
Feels Like: 69°
Tracking several rounds of rain this work week
KIMT Radar
KIMT Eye in the sky

Latest Video


Dr Oz: Dealing with anxiety


My Money Community Spotlight Series: Hiawatha Homes


Tracking AM Fog and PM Rain


Some hit the links for Father's Day


Rochester family raises money for service dog


School upgrades to begin in Forest City


Cleaning up after flooding


Roosters Base Ball Club of Rochester hosts Father's Day game


Storm Team 3: After heavy rain this weekend, more is on the way


Ride to Fight Suicide hopes to prevent suicide

Community Events