Income Tax Cut Passes Iowa Senate

Iowa Capitol

Rielly part of unanimous Senate vote to cut income taxes on working families

(DES MOINES) For the third time, the Iowa Senate has approved an income tax cut for working families. By a vote of 48-0, the Senate voted on Tuesday, February 14, to increase the Iowa Earned Income Tax Credit. Last year, two earlier attempts to cut taxes on working Iowa families failed when Governor Branstad vetoed them.

“This is a pro-family, pro-economic growth tax cut which helps working families making less than $45,000 a year,” said State Senator Tom Rielly of Oskaloosa. “You have to earn a paycheck to qualify for this tax cut, which goes to families caring for 37 percent of all Iowa children.”

Created with the help of President Ronald Reagan, the Earned Income Tax Credit lifts 4 million people out of poverty each year. Republican and Democratic legislators agree that it is the most effective anti-poverty program for working families. The impact is especially important in Iowa, which is one of just 6 states which taxes families earning less than poverty-level wages.

“This tax cut will be spent by working families in our local communities on things such as milk, gas, clothes for school, car repairs and medical bills,” said Rielly. “It will help 260,000 families, the families that are home to almost 40 percent of Iowa kids live. With such strong support from both Democrats and Republicans, I’m hoping we get the job done this year.”