Gov. Kim Reynolds released the following statement in response to the Common Sense Institute Iowa’s study finding that recent tax cuts will create approximately 6,800 jobs in 2025, contribute to $1.72 billion in GDP growth in 10 years, and increase disposable personal income for Iowans by $3 billion over the next decade:
“Despite challenging national headwinds, Iowa’s economy is steady and strong. The CSI study shows that Republicans’ conservative budgeting practices are paying off for everyone, even those who don’t pay income tax,” said Gov. Kim Reynolds. “Our commonsense policies are creating jobs and putting more money in the pockets of hard-working Iowans just as intended.”
Other key finding of the study:
- SF 2442 will result in $1.85 billion in tax savings for income-tax payers in 10 years.
- In three forecasted scenarios, including two recessions of varying severity, CSI found Iowa’s recent tax reductions are sustainable over the long term.
- In all three forecasted scenarios, including a recession comparable to 2008, CSI found Iowa could sustain additional tax reductions without reducing state spending over at least the next decade if it did so judiciously.
- In 2025, SF 2442 will reduce income taxes for the typical Iowa household earning $75,000 per year by approximately $410, in addition to savings from recent reforms.
You can find the full study done by the Common Sense Institute Iowa here.