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Our problem is not overtaxation, it’s under-collection.
Since Indiana is taxes are based on the income you report on the Federal return, if there is under-collection, it’s because the IRS has been defanged by Republicans “defunding the tax police”, and anybody high income individual that doesn’t get all of their income reported on 1099 is laughing all the way to the bank. Meanwhile the little guy that works 3 jobs and every penny of income is reported on a 1099 is getting hosed.
If Indiana runs huge budget surpluses, then it’s also under spending. I suspect that part of the problem is that with a rural majority in the legislator, and those areas receive plenty of state dollars, there is little will or incentive to fix some of funding inequities for the larger urban areas.
Under collection meaning we don’t collect enough in taxes intentionally. We should tax ourselves more and spend more on infrastructure and mental health care and education.
For instance – we have a looming issue that, between the rise of electric vehicles and increased fuel efficiency, we won’t have enough money for our roads because we fund them from gas taxes and that source is about to start declining.
Yet we are so insistent that, despite the roads being a public resource that benefits everyone, we couldn’t possibly fund them from sources like individual income taxes or business taxes. Why the heck not?
https://indianacapitalchronicle.com/2023/09/29/state-panel-convenes-to-take-on-expected-plunge-in-road-revenue/
How about universal school choice?