Possibly Paying Less in State Income in 2030

Source: (PHOTO: Abdul-Hakim Shabazz/WIBC)

STATEHOUSE — You could be paying less in state income starting in 2030 if a Senate bill being considered now by the Indiana House passes and becomes law. That bill would begin a reduction in the income tax, providing Indiana’s economy doesn’t slip significantly.  

“If you ask our members what the number one tax burden is on their small business, it’s consistently income tax,” said Natalie Robinson, the state director for the National Federation of Independent Businesses, giving testimony in a Wednesday meeting of the House Ways and Means Committee.  

Also offering testimony was Graham Renbarger, Coalition Director for Americans for Prosperity.

He argued that the state income tax is the most egregious because it burdens the taxpayer not only with having to pay money into the state, but also with taxing their time.  

But, Rep. Ed Delaney, a Democrat from Indianapolis, questioned Renbarger’s testimony.  

“The chairman for some years pushed a proposal that I endorse, to transfer state income tax revenue into areas where there’s low property tax revenue because there’s low value,” he said. “That is something under this proposal we would be very restricted in doing.”  

Delaney argued that because of the possibility the General Assembly could pass a measure to restrict property taxes, that revenue would have to come from one of the two taxes.  

Delaney was rebuffed by one member of the committee because the two taxes end up in separate funds.