DES MOINES, Iowa (AP) — Most Iowans can expect to see savings from $2.8 billion in income tax cuts awaiting Iowa Gov. Kim Reynold’s signature.
The tax cuts will funnel money to the highest-earning Iowans and give a boost to businesses, but 93 percent of middle-class families will see some savings as well.
A typical family of four would save about $7 per paycheck. Middle-class families in Iowa can expect to see cuts between $86 and $257 next year.
About 40 percent of the tax cuts will benefit the top 4 percent of Iowa taxpayers. The bottom half of Iowans will receive about 7 percent of the overall savings.
Most of the savings will appear in Iowa’s paychecks, because of lower rates for withholding. More is expected to be paid in refunds, too.