Small Businesses Benefitting from Corporate Income Tax Rate Cut
Indiana moved this year to slash its corporate income tax rate to the second-lowest in the nation. But small businesses which don't benefit from that change say there have still been plenty of changes that do help them.
Three-quarters of Indiana small businesses pay their taxes at the individual rate, not the corporate rate. But National Federation of Independent Business state director Barbara Quandt notes the individual rate was cut in 2013 -- the first of two steps will kick in next year, dropping Indiana's income tax from three-point-four-percent to three-point-three. The rate will reach three-point-23 in 2017.
And the bill which slashed the corporate tax also gave counties the option of exempting businesses from taxes on equipment worth less than 20-thousand dollars. Quandt says she'd like to make that exemption universal. When equipment value is that low, she says it costs businesses more to prepare the tax form than to pay it.
Quandt and Indiana Commerce Secretary Victor Smith say the phaseout of the inheritance tax will ease the worries of many family-owned businesses and farms. Smith adds Indiana's low worker's compensation rates are another plus.