(Radio Iowa) – An analysis from a think tank called the Common Sense Institute concludes the latest round of state income tax cuts may create up to 6800 new jobs in Iowa next year.

Ben Murrey, the group’s director of research, said when you pull one policy lever, there are impacts in other areas of the economy. “Number one is when you reduce the individual income tax rate, it’s a boost in consumer spending,” Murrey said.

Business owners who’re paying less in personal income taxes may choose to hire more employees, Murrey said. “That’s how a policy like this ultimately can benefit people who don’t even get the direct benefit of the tax cut,” he said. “They end up getting some of those indirect economic benefits.”

Murrey’s report concludes Iowans will pay $1.85 billion less in state income taxes over the next decade an in 2025 an Iowa household with an annual income of $75,000 will get a $410 state income tax cut.