Tuesday, May 15, 2007
Governor Culver Increases Earned Income Tax Credit
Legislation Eases Tax Burden for Low-Income Families
IOWA CITY – Today, Governor Chet Culver signed SF 590, raising Iowa’s Earned Income Tax Credit for 164,000 low-income households. In a ceremony at the Old Capitol building, the Governor was joined by advocates for low-income Iowans and legislators to reward hard-working men and women.
“When Iowa was a fledgling state, people from all walks of life gathered in this chamber with a simple goal in mind – to turn the “idea” of Iowa into reality. To take this land between two rivers and make it into a place where anyone has the opportunity to succeed,” said the Governor. “Since that time, Iowa has changed. We have seen many triumphs, and persevered through challenges. Yet our goal remains the same as that of Iowa’s earliest leaders – to see that every Iowan has the tools they need to succeed. Then, and only then, will our state be able to move forward.
“This is why, during my Budget Address in January, I made a promise to low-income Iowans - to ease their financial burden so they may participate in our journey to move Iowa forward. Well, I am happy to say that today, this promise we made is a promise we kept!”
In recent years, low-income Iowans have experienced greater financial hardship due to increased state taxes. Iowa is one of 19 states that tax families in poverty, and one of only 8 where these taxes have lately increased.
SF 590 is designed to help ease this burden on working, low-income Iowans. This legislation raises Iowa’s earned income tax credit from 6.5% to 7%, and makes the tax credit refundable. This will put more money into the pockets of low-income Iowans and in some cases, eliminate their tax burden.
Today’s event was part of the Culver/Judge Administration’s “Promises Made, Promises Kept” tour. Throughout the summer, the Governor, along with Lt. Governor Patty Judge, will visit communities across the state to highlight the success of their first legislative session.