IOWA – Congresswoman Mariannette Miller-Meeks (IA-01) today marked the one-year anniversary of the Working Families Tax Cuts becoming law, highlighting the real savings and tax relief the legislation has delivered for Iowa families, workers, farmers, seniors, and small businesses.

Signed into law one year ago, the Working Families Tax Cuts have lowered taxes, increased take-home pay, and helped hardworking Americans keep more of what they earn.

“One year later, the Working Families Tax Cuts are delivering exactly what they promised: lower taxes, bigger paychecks, stronger family budgets, and real savings for hardworking Americans,” said Congresswoman Miller-Meeks. “Whether it is tax relief for seniors, workers earning overtime, families raising children, or farmers passing their operations on to the next generation, these policies are making a real difference. I will continue fighting for policies that put Iowans first.”

Background

One year after becoming law, the Working Families Tax Cuts continue to provide meaningful relief for millions of Americans through provisions including No Tax on Tips, No Tax on Overtime, tax relief for seniors, permanent protections for family farms, incentives to strengthen American manufacturing, and new $1,000 Baby Investment Accounts for eligible newborns.

Since enactment, the Working Families Tax Cuts have delivered:

• Tax refunds increased by 11%, putting more money back into the pockets of hardworking Americans.     
• No Tax on Tips: More than 7.5 million Americans have claimed the deduction, with an average tax benefit of over $7,000. By allowing workers to deduct up to $25,000 in qualified tip income, servers, bartenders, hospitality workers, and others who rely on tips are keeping more of what they earn.
• No Tax on Overtime: More than 29 million Americans have claimed the deduction, saving an average of over $3,100. This provision helps police officers, firefighters, nurses, EMTs, corrections officers, and countless other workers keep more of their overtime pay.
• Social Security Tax Deduction: More than 35 million seniors have claimed the new deduction, receiving an average tax benefit of over $7,500. Eligible seniors can claim a $6,000 deduction, while married couples can receive up to $12,000, helping them afford everyday necessities and enjoy greater peace of mind after a lifetime of hard work.
• Enhanced Child Tax Credit: Nearly 40 million families have claimed the expanded $2,200 Child Tax Credit, helping parents cover the costs of raising children and providing additional financial stability.
• Doubled Standard Deduction: The law preserves the doubled standard deduction, benefiting over 90% of taxpayers and allowing families to keep more of their hard-earned income.

• Protection for Family Farms: Delivered permanent relief from the ‘Death Tax’ and helps protect family farms ensuring there farms are passed down to kids and grandkids not sold to pay the IRS. 

• No Tax on Car Loan Interest: Allows eligible Americans to deduct interest on qualifying loans for new American-made vehicles.

• Small Business Tax Deduction: Makes the 20% small business deduction permanent, giving Main Street businesses the certainty they need to invest, hire, and grow.

• $1,000 Baby Investment Accounts: Provides eligible newborns with a $1,000 investment account, helping families begin building long-term financial security from the start of their child’s life.

###

Governor Kim Reynolds, her husband and five of their grandchildren stopped in Mason City this morning to get a look at the city’s new bike park.

“This is a great example of Destination Iowa funds,” Reynolds said, “I think they received $4.5 million, and the partnerships is how we get things like this done.”

Starting in 2023, Governor Reynolds used federal pandemic relief dollars to create the Destination Iowa program to invest in infrastructure, like airports, and boost locations to attract tourists and new Iowa residents and legislators have provided state tax dollars to continue the program. Reynolds said an Iowa Economic Development Authority survey shows the value of the program. “It really pointed out that when people come here from out of state and if they love the experience, they really are more likely to move here and become a resident,” Reynolds said.

The Reynolds family is making a week long tour around the state, visiting outdoor destinations and attractions to draw attention to the governor’s June 8 executive order that established an Iowa Office of Outdoor Recreation. “It’ll partner with tourism, it’ll really highlight all of the great amenities that we have in this state and really drive people to the state,” Reynolds said.

This is day three of the Reynolds’ family road trip. Yesterday they hiked in the Loess Hills and stopped at the West Bend Grotto. The governor said her grandkids were excited this morning as they drove into Mason City’s new bike park. “The whole Winnebago was full of the wow factor,” Reynolds said. “They were lined up on the windows and they were like pointing stuff out and we about tripped over each trying to get out the door so they could get out there and experience it.”

The Prairie Rock Trails Bike Park features wood boardwalks, jumps, and several single-track routes for riders of varying ages and skill levels. It connects riders to more than 20 miles of trails and 600 acres of scenic parkland.

(By Bob Fisher, KGLO, Mason City)