Grassley: Average Iowan to save $2,600 under tax reform plan

Amid hue and cry nationwide over proposed elimination of a number of tax credits and deductions, Iowa’s senior senator said the plan would be good for Iowans.
“For average Iowa families, (the proposed tax rule changes means) $2,600 more in their pockets to spend,” Grassley said during a telephone conference call Nov. 13 with Iowa media outlets. “You are able to reduce middle class income tax rates to a greater extent.”
Grassley provided those comments in response to a question posed by The Graphic-Advocate about the potential impact of eliminating the state income tax deduction on federal taxes. The House version of the tax reform bill reduces the deduction, while the Senate version eliminates it.
Some calculations, cited by Iowa legislators earlier this year, put Iowa’s income taxes in the top five or 10 nationwide; Grassley said low-tax state residents are subsidizing residents of higher-taxed states by not being able to claim high income tax deductions on federal tax returns.
Read more in the Nov. 22 edition.