Indiana House passes bill to cut corporate tax rates

Indiana's corporate income tax rate would be cut by nearly 25 percent over the next four years under a plan the Indiana House has approved.

The House voted 62-34 Thursday for the bill to incrementally reduce the corporate tax rate from the current 8.5 percent to 6.5 percent in 2015.

Bill supporters say Indiana's current rate is among the nation's highest and argue that it discourages businesses from coming to the state. Democrats argued it's not right to help the very richest in society as others suffer from state budget cuts.

The full tax cut is estimated to reduce state tax collections about $80 million a year, but could lead to more tax collections if it spurs more business. Legislators expect to make up that revenue by starting to tax the interest on out-of-state bonds held by Indiana companies and residents.