It’s a $54 million tax cut

Governor Chet Culver, a Democrat, just talked to a gaggle of reporters gathered around him in his office after a bill signing ceremony.  He indicated the Democratic tax plan that has emerged provides a tax cut to 800,000 Iowa households and the plan, overall, provides a $54 million tax cut to Iowans.  

UPDATE:  Here's the Radio Iowa story. 

Below is the memorandum Democrats in the legislature released this afternoon explaining details of their plan.

• All Iowans will see a reduction in their tax rates.
• More than 60 percent of Iowa taxpayers – more than 825,000 Iowa households – will have their taxes cut.
• The overall tax cut totals $54 million.
• Nearly 75 percent of Iowa taxpayers – nearly 1 million households – will either have a tax cut or no change at all to their taxes.
• Iowa’s tax rates will be more competitive for economic development and job creation.
• Iowa’s highest tax rate will be reduced by 22 percent, from 8.98 to 6.98 percent.
• More than 881,000 Iowans will see their standard deduction increased by nearly $1,000.
• More than 31,000 Iowa families will see an increase in the child and dependent tax credit.
• All Iowans will realize tax simplification, including the elimination of 9 lines from the state’s 1040 tax form.
• Nearly 69,000 Iowa college students will benefit from a new $100 refundable tax credit.
• 125,000 Iowa households will benefit from an increase in the elderly and blind tax credit.
• More than 187,000 Iowans will benefit from an increase in the Earned Income Tax Credit.
• 80 percent of Iowa farmers who pay state income taxes will receive a tax cut under this revised proposal or see no change (i.e., 61.5% will see a tax cut and 17.9% will see no change).
• 73 percent of Sole Proprietors (small businesses) who file a Schedule C will receive a tax cut under this revised proposal or see no change (i.e., 66% will see a tax cut and 9% will see no change)
• 67 percent of Subchapter S, Partnerships & LLC’s (small businesses) who file a Schedule E will receive a tax cut under this revised proposal or see no change (i.e., 51% will see a tax cut and 16% will see no change)