Q&A: Tax Law Benefits Iowans

Q: What are you hearing from Iowans during your county meetings?

A:During the month of August, I take advantage when the Senate’s not in session to spend all my time in Iowa. As usual, I’m continuing my annual 99 county meetings and listening to Iowans across the state. By the end of the month, I’ll have reached 87 of our 99 counties so far this year and will bring Iowans’ feedback to Washington after Labor Day. Last week, my road trip took me to 13 counties in Western Iowa. This week I visited seven more on the eastern side of the state. Among my stops, I toured local businesses, manufacturers, hospitals, a recreational facility for individuals with disabilities and theglobal headquarters for a genomics solutionscompany. At each county meeting, the format is the same. I open the floor for a question and answer session. No question is off-limits. Iowans set the agenda. Although I’ve been holding my county meetings for 45 years in a row, I’m always impressed by the innovative products and services that are made right here in Iowa by our high-quality workforce. From apacking and refrigeration supplierfor ag exports to aplastics businessthat helps farmers improve efficiency during planting and harvesting seasons, ora global filtration solutions companythat serves construction, transportation and food and beverage customers, my conversations with employers and workers help me do a better job representing their needs at the policymaking table in Congress. Iowa businesses in the energy and ag sectors shared concerns about tariffs impacting their operating costs. As harvest season approaches, farmers expecting a bumper crop said they depend on exports and domestic demand for biofuels to see profitability. I’ll continue pushing for the permanent, year-round sale of E15 nationwide and have also introduced the bipartisanEthanol for America Actto expand access to homegrown biofuels.
At my meetings with health care professionals in Ida Grove, Carroll, Independence and Coralville, I was asked about protecting access to rural health care, Medicare andMedicaid, physician shortages and federal grants. At a community pharmacy in Dunlap, I shared updates about my bipartisan efforts to lower prescription drug prices and holdingPharmacy Benefit Managers (PBMs) accountable. PBMs are the third-party middlemen between drug manufacturers, pharmacies and health insurance plans. They’ve adopted deceptive pricing schemes that pad their profits while inflating the price of prescription drugs for patients. The PBM business model also harms local, rural pharmacies with restrictive contracts and under-reimbursements, making it hard for them to keep their doors open for local residents. I’ll keep pushing to lower prescription drug prices, restore competition in the drug supply chain and strengthenaccess to local pharmaciesin rural areas.
Q: What are you hearing from Iowans about theOne Big Beautiful Bill?

A:In Council Bluffs, I met withmembers of the restaurant and hospitality industries. They told me how much theOne Big Beautiful Billhas boosted their employee morale and will make it easier for them to recruit and retain workers because of the new no tax on tips and no tax on overtime benefits. The tax law President Trump signed on July 4 prevented the biggest tax increase in history and will keep more money in people’s pockets. Specifically, eligible workers can claim a federal income tax deduction of up to $25,000 for tips retroactive to Jan. 1, 2025. For workers who earn overtime wages, the new tax law allows eligible individuals to deduct up to $12,500 ($25,000 for married couples) from their federal taxable income. It’s good to hear how theOne Big Beautiful Billwillboost businessesin our communities and I’m glad tohear from Iowanswho are excited about keeping more of their hard-earned money. In addition to the individual tax cuts for tipped and overtime workers, eligible seniors also get a $6,000 tax deduction under the new tax law. A recent nonpartisan analysis shows on average Iowans will save more than $3,000 on their federal taxes next year. Keeping more money in the pockets ofIowa familiesallows households to spend, save or invest their hard-earned money as they see fit.