Governor Tom Vilsack today signed a law that ensures Iowans’ll keep about 23-million dollars in their pockets. The legislation makes sure state income taxes aren’t charged on those federal tax refunds due in a few weeks. Iowans will get about 426 million dollars in federal tax rebates. The average refund for an individual will be about three hundred dollars. State taxes on that would have amounted to 14 dollars, but you’ll get to keep it all now. Vilsack actually criticized the federal tax rebate as a gimmick today, saying a better return on investment would be to spend more money on education and economic incentives for businesses.
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