Benefits of Iowa's tax cuts could be delayed by slow growth - KWWL - Eastern Iowa Breaking News, Weather, Closings

Benefits of Iowa's tax cuts could be delayed by slow growth

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DES MOINES, Iowa (AP) -- Iowa Republicans say it was essential to pass $2.8 billion in tax cuts in part due to federal tax changes, but those state reductions might not be implemented for years under a plan awaiting the governor's signature.
   Eliminating so-called "federal deductibility," along with raising the state's standard deduction, won't happen until the state reaches a certain amount of tax revenue and shows significant growth in the previous year. Those changes could happen no sooner than 2023.
   Iowa has only met the necessary growth rate in 11 of the past 19 years. The state would need five straight years of significant growth to trigger the cuts in 2023.
   Other provisions of the bill, including an initial income tax cut and corporate tax reductions, would happen regardless of economic conditions.

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