Sales tax is Indiana’s largest source of revenue. But it is tied to consumer spending, and Americans have become increasingly reluctant to spend as median incomes have remained virtually stagnant over the past 30 years.
Politicians in Indiana and other states hope tax cuts for businesses will boost their economies, but those and other moves could be contributing to the income gap limiting growth in U.S. consumer spending.
Growing ranks of dropout workers have nagged the economy throughout its recovery, and now Indiana’s budget forecasters feel they can’t ignore the trend. They recently revised their outlook on state revenue downward, partly because so many Hoosiers stopped looking for jobs.
Indiana’s fiscal picture is looking good with about $2 billion in cash reserves and a strong credit rating, but the next few years could leave the state in a fiscal pinch.
The move likely will prompt more states to attempt to collect taxes on Internet sales — and ignite a furious battle in Congress between Internet sellers, brick-and-mortar stores and states hungry for extra tax revenue.
During a committee meeting Tuesday, Sen. Brent Waltz and Rep. Ed DeLaney crossed swords on a proposal that included widening roads and reforming the IndyGo bus service.
An effort to require Amazon.com and some other online-only retailers to start collecting Indiana's 7-percent sales tax this summer has fallen short in the Legislature.
States could force Internet retailers to collect sales taxes under a bill that overwhelmingly passed a test vote in the U.S. Senate on Monday.
Republican state senators have blocked a vote on a bill that would force Amazon.com and some other online-only retailers to start collecting Indiana's 7-percent sales tax this summer.
Some key state senators are sidelining a bill that would make Amazon.com and other online-only retailers start collecting Indiana's 7-percent sales tax this summer.
The Indianapolis Motor Speedway will need far more money than it will get from a proposed state tax subsidy if it hopes to be in the top tier of U.S. racing venues, sports business experts said.
The Indiana Senate Appropriations Committee on Thursday morning unanimously passed a bill that would capture state tax money generated at the Indianapolis Motor Speedway and give it back to the track to improve the facility.
Nearby businesses hope upgrades to the Indianapolis Motor Speedway from a proposed state taxing district would pave the way for additional offerings at the venue, including night racing.
Amazon.com and other online-only retailers would have to start collecting Indiana's 7-percent sales tax this summer under a bill approved overwhelmingly by the Indiana House.
Hoosiers may be required to pay a 7-percent sales tax on top of their Amazon purchases starting July 1 if a proposed House bill is adopted.
Two lawmakers say they plan to introduce legislation in the new year that would require Amazon.com and other online-only retailers with a presence in Indiana to begin collecting sales tax on July 1, 2013, six months earlier than expected.
Two lawmakers say they plan to introduce legislation in the new year that would require Amazon.com and other online-only retailers with a presence in Indiana to begin collecting sales tax on July 1, 2013, six months earlier than expected.
Indiana’s major-party candidates for governor can’t bestow a job upon every unemployed Hoosier, but each has offered what he considers the next-best thing: at least $500 million in tax cuts.
Legislature agreed to extend to Indy Racing Experience the same sales-tax exemption enjoyed by race teams.
Most local economic development organizations rely on private contributions and some government money to support their efforts. But an unstable economy has led to some belt-tightening and soul searching on alternative ways to fund the associations.
