HIAWATHA, Iowa -- Governor Kim Reynolds is cutting billions in taxes for Iowans ... but not everyone agrees that is a good thing.
On Wednesday afternoon Reynolds signed Senate File 2417 into law during a visit to a manufacturer in Hiawatha. The bill will cut taxes by nearly two billion dollars over the next six years.
Reynolds released a statement after signing the bill saying:
“I signed this bill for every Iowan who works hard to earn a paycheck and deserves to keep more of it. It’s one of the reasons why I feel so strongly that government must never forget that it’s the people’s money they’re spending.”
However critics question how the savings are spread around and whether or not the state can afford to cut taxes further right now. In each of the last two years the state has faced budget shortfalls due to decreases in tax revenue. This tax reform bill could cut those revenues even further.
Iowa Policy Points says Iowans earning $250,000 or more per year will see their taxes cut by twice as much as middle class Iowans. The group says the only ways these tax cuts are feasible is if other services like education and public safety face off-setting budget cuts.