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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA plan for gradually cutting Indiana’s individual income tax rate over the next seven years has been signed into law by Gov. Eric Holcomb.
The governor’s office announced Wednesday that Holcomb had signed the bill approved by legislators last week that will reduce the state’s current income tax rate of 3.23% to 2.9% in small steps until its planned full implementation in 2029.
The plan will cut the tax rate to 3.15% for 2023, which would amount to $40 savings for individuals or families with $50,000 in taxable income. Further reductions in 2025, 2027 and 2029 would occur if state tax revenue grows by at least 2% in the previous budget year.
Holcomb and state Senate Republican leaders for months resisted backing significant tax cuts sought by House Republicans, citing concerns about inflation and a possible slowdown in Indiana’s booming tax collections with the end of federal COVID-19 relief funding.
But that hesitancy faded away in the final weeks of the legislative session, with Holcomb saying ongoing strong tax revenue made him confident the state could afford the tax cuts.
Republicans rejected a call from Democrats for a suspension of the state’s 32 cents-a-gallon gasoline tax and the 7% sales tax on fuel, which Democrats argued would bring immediate savings to residents amid a national surge in gas prices.
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Instead of concentrating on not being a bottom 5 standard of living state our state legislatures only concentrate on how to punish Indianapolis and how to pretend cutting taxes will increase our standard of living?
Embarrassing.
Gee, a whole 40 dollar savings per year. I’d rather have the state have it and do improvements to schools, housing, infrastructure, etc…
but that takes hard work… our state “leadership” would prefer to just pretend they accomplished something.
The supermajority in the state legislature should have legalized recreational marijuana in Indiana. That way we all could at least afford the Twinkies with their paltry tax cut.
The pocketbook impacts of the utility sales tax elimination portion of this bill may be more than the income tax reduction portion, at least in the early years.
Better they are going down than up. How about the 10 states or so that have no income tax? That’s something to strive for. I applaud the legislature for heading the right way.
Roads that don’t look like they’ve been bombed from the skies would be something to strive for too.
Give $40 take $100