Where the Battle Over Indiana Tax Relief Stands Now

STATEHOUSE–If you’ve been following the bill that could give you some relief by gradually reducing the state’s income tax, provided there’s consistent economic growth, an amendment was passed Wednesday that would make it easier for the cuts to happen.

But, some Democrats object because they believe more cuts are too risky for the health of the state budget.

“I wish I had the luxury in my personal life of cutting my future income without knowing what my future expenses were,” said Rep. Ed Delaney of Indianapolis.

He’s a member of the House Ways and Means Committee , which passed an amendment that lowered the “trigger” for the plan. There now must be consistent economic growth of 3.5 percent for four consecutive years for the cuts to kick in, according to the amendment, which passed 16-7.

“The trigger is there, but I still believe we need to have that tax relief for ordinary workers and taxpayers. It’s not worth the hundreds of millions of dollars that we’ve lost through these cuts over the years,” said Rep. Greg Porter, also a Democrat from Indianapolis.

He believes that previous tax cuts have made it tough for lawmakers to properly budget.

Porter introduced his own amendment to put the trigger at 5 percent, which failed.

“I think this is a worrisome path. It’s cost us before. In fact it’s costing us this year where we’re imposing tax cuts where we didn’t know what they would be like when this environment arose. So, here we go again. So, I’m a no,” said Delaney, in speaking on his vote for the amendment which passed.

The bill still has to get final approval and the governor’s signature before it becomes law.