Iowa's Minimum Wage Increase
By Mike Owen, IPP
Iowa lawmakers earlier this year passed a minimum wage increase, the first phase of which will take effect in about two weeks. Many also have supported an expansion of Iowa’s Earned Income Tax Credit, another public policy initiative designed to “make work pay.”
Iowa’s EITC — 6.5 percent of the federal EITC — is quite small in comparison to those enacted in other states, and has far less participation among low-income tax filers than the federal credit. One reason is that unlike the federal EITC, the state EITC is not refundable, so not as many taxpayers would benefit from it.
There are many alternatives being considered on this issue. We have prepared two two-page backgrounders that may help you in your coverage and/or commentary. Links to those pieces are below and on our IFP website <http://www.iowafiscal.org>, or we could send PDF files directly to you for either or both if you prefer. Please contact us if you need more information.
Next Piece of the Puzzle
After Minimum Wage, Iowa Looks at Earned Income Tax Credit
How the EITC Hits Home
Impact of EITC by state legislative district (table and map)
Mike Owen
Iowa Fiscal Partnership
news@iowafiscal.org
http://www.iowafiscal.org
Assistant Director
The Iowa Policy Project
120 N Dubuque St. #208
Iowa City, IA 52245
(319) 338-0773
ipp@Lcom.net
http://www.iowapolicyproject.org
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