STATEHOUSE — The package of tax cuts being pushed by state lawmakers is getting sweeping support from Hoosier businesses.
Indiana Chamber of Commerce president Kevin Brinegar tells Indy Politics there are a few taxes in particular that he says would have an immediate impact on helping businesses. One of which would eliminate the minimum that businesses can pay on state property taxes.
Another cut has to do with lowering the state’s income tax.
“It phases down the individual income tax from 3.2-percent to 3-percent,” Brinegar said. “Which obviously helps individuals, but also all the ‘pass-through businesses.’ The S-corps, the limited LLCs.”
These types of businesses don’t directly pay income taxes. Instead, those duties are “passed through” to the business’s shareholders, who then report their share of the company’s income on their individual taxes.
Finally, Brinegar said another big tax cut they are supporting would eliminate the gross receipts tax for utility companies in Indiana.
“This will certainly, in vision, reduce utility rates and provide some relief, not just for individuals, but businesses particularly,” he said.
Brinegar said the tax cuts are not only an option but more of a necessity. He says strong economic growth and tax revenues that are exceeding expectations year over year mean the state can afford to cut back.
He said without the proposed tax cuts, most estimates say the state would have over $5 billion in surplus money, which he says is far more than what is needed in the state’s annual budget.
