Indiana Chamber Supports Governor’s Call to Restore Major Tax Cuts to HB 1002

The Indiana Chamber backs Gov. Eric Holcomb’s call yesterday to not only restore the tax cuts originally in House Bill 1002 but take them a step farther given the state’s strong fiscal position.

The Governor is spot on with his call to action for the General Assembly and his assessment that these major tax relief measures would have such a positive impact on the state – with both businesses and individuals able to put more money back into the economy. We are glad to see the Governor coming out in such strong support for citizens and employers. We hope lawmakers take note, particularly the Senate Republicans who removed these provisions from the bill.

In the House-passed version of HB 1002, there was a phaseout of the 30% depreciation floor in the state’s business personal property tax – something the Indiana Chamber has long advocated to see and the Governor is championing.

This tax requires business owners to pay on essential business machinery and equipment based on 30% of its original value even after it has depreciated to much less than 30%. This is an anti-competitive tax that punishes businesses that invest in equipment to grow their output.

Among the other HB 1002 provisions the Senate removed: a repeal of the utility gross receipts tax that drives up energy bills of Indiana businesses and homeowners, as well as a reduction in the state income tax rate for all individuals and pass-through businesses. Governor Holcomb is calling for the income tax rate to be lowered to 2.9%; the House had proposed 3%.

As we said last week, the state and General Assembly should not hold onto so many taxpayer dollars when the state’s fiscal position is incredibly strong with record reserves of $6 billion and growing, as well as a structural surplus of over $2 billion

As the Governor has now stated, Indiana certainly has the resources to implement all of these tax cuts. As the legislative session comes to a close, we will continue to also make that point with lawmakers.

Resource: Kevin Brinegar at (317) 264-6882 or email: kbrinegar@indianachamber.com