Indiana Senator and Tax Foundation Praise Indiana's Tax Laws
STATEWIDE-President Donald Trump spoke highly of Indiana's tax code and laws when he came to Indiana earlier this month. The nonpartisan Tax Foundation is doing the same of the Hoosier state. Indiana came in 9th place overall for the 2nd year in the 2018 State Business Tax Climate Index. The state performed well in many individual categories, ranking 4th in property tax, 9th in sales tax, and 10th in unemployment insurance tax.
Neighboring states near Indiana aren't scoring nearly as highly (Illinois is 29th, Kentucky is 33rd, Michigan is 12th, and Ohio is 45th).
Scott Drenard, the Tax Foundation's director of state projects, praised Indiana for its well-structured tax climate.
"Indiana has made notable strides in improving their tax system each year," Drenkard said. "Their tax reform is groundbreaking and reflects a thoughtful, mature approach to building a simple, competitive tax system."
State Senator Brandt Hershman (R-Buck Creek) said these are just a few of the ways that Indiana has improved its tax climate:
1.) In 2011 and 2014, the General Assembly passed legislation to phase down its corporate income tax rate from 8.5% to 4.9% by 2022, moving its corporate tax from the middle of the pack nationally to among the lowest rates in the country.
2.) In 2013, the General Assembly also approved a 5% individual-income tax cut, saving Hoosier taxpayers hundreds of millions of dollars each year.
3.) In 2013, Indiana eliminated the state inheritance tax. It was previously one of only eight states to levy a "death tax," which was unnecessarily burdening family-owned farms and businesses.
4.) Indiana has instituted all these tax reforms while maintaining a balanced budget and cutting its debt.
(PHOTO: Senator Brandt Hershman's Office)