In 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law, and while it sparked debate across the country, it had a real and measurable impact on the wallets of everyday Americans. The tax cuts, especially those benefiting businesses and individuals, were designed with one core principle: to stimulate economic growth by giving taxpayers more of their hard-earned money and by incentivizing businesses to reinvest in the economy. Now, nearly eight years later, we find ourselves at a critical juncture. As tax cuts are scheduled to expire in 2025, Congress must act to protect these pro-growth reforms and continue building on them to ensure that all Americans—especially Iowans—can continue to experience the benefits of this bold policy.
How the Tax Cuts and Jobs Act Benefited Iowans
For Iowans, the TCJA meant real, tangible savings. According to the U.S. Department of Treasury, nearly 1.9 million Iowans saw a reduction in their income tax burden as a result of the TCJA. On average, the typical Iowan family saved approximately $1,500 each year due to lower tax rates, a larger standard deduction, and child tax credits. This was money that went straight back into the pockets of hard-working families, allowing them to spend more, save more, and invest in their future.
Small businesses, a cornerstone of Iowa’s economy, also benefited significantly. The TCJA’s reduction in the corporate tax rate from 35% to 21% helped Iowa businesses—whether a local family-owned restaurant or a manufacturing plant—stay competitive, reinvest in their operations, and hire more workers. According to the Tax Foundation, the tax cuts contributed to an increase in business investment, which, in turn, led to higher wages and more job opportunities for Iowans.
In short, the TCJA helped fuel Iowa’s economic growth, making it easier for families to make ends meet and for businesses to thrive.
Why Congress Must Act to Make the Tax Cuts Permanent
Despite these positive impacts, the tax cuts are not permanent. In just a few short years, key provisions of the TCJA are set to expire, including the lowered individual income tax rates and the increased child tax credit. If Congress does not act, millions of American families—many of them in Iowa—could see their taxes go up again, undoing the progress we’ve made.
In Iowa, where the median household income is around $58,000 and where property taxes and the cost of living can be burdensome, the expiration of these tax cuts would put a strain on family budgets. The TCJA has provided real relief, and letting it expire would be a step backward for the state’s economy. Congress has the opportunity—and the responsibility—to act before it’s too late, making the tax cuts permanent and ensuring that all Americans continue to benefit from a tax code that promotes growth and opportunity.
Further Reforms: Eliminating Special-Interest Tax Breaks and Opposing New Taxes
It’s not just about keeping the status quo. Congress should also consider further reforms to the tax code, particularly by eliminating special-interest tax breaks that disproportionately benefit wealthy corporations and influential lobbying groups. These tax breaks distort the market and create unfair advantages, undermining the true goals of the TCJA: broad-based economic growth and opportunity for all.
By further simplifying the tax code and removing these loopholes, Congress can ensure that tax relief is more evenly distributed and that the tax system is more transparent and fair. The priority should be to reduce taxes for individuals and small businesses, who are the true drivers of economic growth in Iowa.
Additionally, it is vital that Congress oppose new taxes, which have become a common proposal among some lawmakers. New taxes on income, services, or products only serve to stifle economic activity and impose further burdens on hardworking Americans. Higher taxes would discourage investment, harm small businesses, and slow down job creation—everything the TCJA aimed to reverse.
Why This Matters for Governor Reynolds and Iowa’s Future
Governor Kim Reynolds has been a steadfast advocate for lower taxes in Iowa, consistently seeking to make the state’s tax code more competitive and attractive to businesses. Under her leadership, Iowa has already made substantial strides in lowering income tax rates, including a historic tax reform package in 2023. But for Governor Reynolds to continue to drive Iowa’s economic success, she needs Washington to back her up.
If Congress allows tax cuts to expire or fails to build on the progress made by the TCJA, it will be harder for Governor Reynolds to maintain the momentum she has built in Iowa. The governor has been clear: she wants to cut taxes even more to attract investment, create jobs, and ensure that Iowa remains a great place to live, work, and raise a family. But to do that, she needs the federal government to be a partner—not a hindrance—in promoting economic growth.
By acting now to make the TCJA’s tax cuts permanent and to remove unnecessary barriers to opportunity, Congress can provide Governor Reynolds the tools she needs to continue cutting taxes and stimulating Iowa’s economy.
The Bottom Line: Protecting the Tax Cuts Is Protecting All Americans
At the end of the day, the TCJA was about more than just tax rates—it was about empowering the American people to live better lives, start businesses, invest in their communities, and plan for the future. The tax cuts have made a difference in the lives of millions of Iowans, and we must not let those gains slip away.
The evidence is clear: tax cuts fuel economic growth, create jobs, and increase wages. Iowans, who have already benefitted from these reforms, are counting on Congress to act in their best interests. Protecting the TCJA’s tax cuts and building on those reforms is not just the right thing to do for Iowa—it’s the right thing to do for the future of America.
Congress, now is the time to act. Keep taxes low. Protect growth. Make the tax cuts permanent, and continue to eliminate barriers to opportunity. Iowans—and all Americans—are counting on you.
