Over Easter break I continued my annual 99 county meetings, holding 25 Q&As with Iowans across central and eastern Iowa. It’s important for me to hear directly from Iowans. Dialogue is the essence of representative government. At nearly every meeting, we talked about the economy, health care and high input costs that are impacting farmers’ profitability and food prices.
The good news is that the Republican-led Working Families Tax Cuts law is delivering a much-needed boost to local manufacturers and businesses. The tax law locks in a 20% tax deduction for small business owners and doubles the small business expensing limit. This allows companies to write off the full cost of new equipment and technology in the first year. That means more money available to invest in the local workforce – from child care to higher wages and employee training – and improved cash flow helps fuel product development and business expansion.
Touring local factories allows me to learn about the high-quality products made right here in Iowa. I particularly enjoy conversations with workers on the shop floor. For example, in Indianola, I met with more than 100 workers who are part of a 100% employee-owned company that manufactures mobile concrete carriers for customers around the world. In Eddyville, I met with Iowans who produce a value-added corn product used in the food and pharmaceutical industries. In Panora, I learned about a homegrown business started by Iowa State graduates who turned their dream into a thriving tunneling business that employs 40 people and runs large-scale projects around the country.
Keeping these local businesses thriving is important to local economies and household budgets. Good-paying jobs help families get ahead and stay ahead and strengthen economic vitality in the local community, helping restaurants, services, retailers and the local tax base to support schools and infrastructure.
As tax season ends, I’m glad to report the 2025 tax law is returning hard-earned money back to the taxpayer. Tax cuts on tips, overtime and senior income are helping Iowans pay their bills, buy groceries, add to their savings and invest in home repairs, businesses or a new car. According to the IRS, the average tax refund is up 11% compared to last year, with average refunds reaching $3,500. That’s a direct result of the tax bill signed into law last July 4 by President Trump. And not one single Democrat voted for it.
Just consider:
- More than 23 million taxpayers have claimed the No Tax on Overtime provision, that’s giving first responders, nurses and factory workers a well-deserved pay boost for their extra hours on the job.
- Nearly six million Americans have benefited from the No Tax on Tips, giving an immediate earnings boost to hair stylists, restaurant workers and other service industry employees.
- More than 26 million taxpayers have claimed the expanded deduction for seniors making less than $75,000 or couples making less than $150,000.
The tax law also expanded and made permanent the federal estate tax exemption to help ensure family farms and family-owned small businesses can stay in the family from one generation to the next. What’s more, the family-friendly tax law put money where it can do the most good – back into the pockets of moms and dads burning the candle at both ends to raise a family.
As a member of the tax-writing Senate Finance Committee, I pushed to make family-friendly provisions a permanent part of the federal tax code, including:
- Lower marginal tax rates;
- Expanded standard deduction;
- Doubling the Child Tax Credit from $1,000 to $2,200;
- Indexing the Child Tax Credit for inflation, when costs go up, so does the tax credit;
- Beefing up employer-provided child care credit and boosting child care assistance for families to help defray costs for moms and dads to afford childcare;
- Making the Adoption Tax Credit partially refundable, up to $5,000.
The Republican Congress passed the Working Families Tax Cuts law to put more hard-earned money where it belongs: in people’s pockets. Iowans are better stewards of their own money to save, invest and spend on their families, farms and businesses. Now, Iowans have more money in their pockets thanks to Republicans. Make no mistake: Democrats have an insatiable appetite for federal spending and raising your taxes, which is why every single Democrat voted against this historic law. Iowans can’t afford to forget that on Election Day.
Senator Chuck Grassley’s Official Photograph
