Income Tax Reduction Passes IA House

The Iowa House has approved a measure that would cut the individual income tax rate by 20 percent. Backers of the measure argued Wednesday that the tax cut would spark Iowa's economy by putting more money in the pockets of consumers.For an Iowan making $40,000 a year, the tax rate would drop from 6.8% to 5.4%. That would mean annual savings of up to $560. Opponents say the cut would cost the state more than $700 million annually in tax revenue.