State officials predict Iowans will pay about $1.5 billion less in federal taxes for 2018 due to the recent changes in the federal tax code.
Iowans get a state income tax deduction for their federal taxes. Officials say that means the State of Iowa may get as much as $16 million more in income tax revenue by April 30, 2019. The windfall to the state would be more than $100 million the following year — if no changes are made to state income taxes.
The 2018 Iowa legislative session begins Monday. Republicans who control the legislature’s debate agenda say they plan to return any “windfall” the state may get from federal tax changes to Iowans by cutting state income taxes.