High state revenues could fuel campaign to cut taxes in General Assembly | Government and politics
“The Hoosiers have made it clear that they don’t want more government in their lives and they don’t want more spending from us,” Huston said Thursday.
“We are probably facing $ 5 billion in reserves and a structural surplus of $ 2 billion. It would be irresponsible to develop the government. As part of our tax cut plan, we will be giving back about $ 1.3 billion. of dollars in Hoosiers’ pockets while continuing to protect Indiana’s financial future. “
The House GOP’s tax cut proposal calls for a gradual reduction in the state’s personal income tax rate to 3% by 2026, from 3.23% currently.
Under the plan, the rate would drop to 3.15% in 2023, 3.10% in 2024, 3.05% in 2025 and finally to 3%.
This means that a Hoosier earning $ 50,000 a year would see their current annual tax burden of $ 1,615 drop to $ 1,575 in 2023, $ 1,550 in 2024, $ 1,525 in 2025 and $ 1,500 in 2026.
The measure also eliminates the utility revenue tax from Hoosier’s electricity bills and encourages companies to invest in new equipment by exempting more production inputs from the 7% sales tax and eliminating the minimum assessment of 30% on equipment subject to corporate property tax.
“It’s not just about 2022. It’s about preparing for the long term,” Huston said. “We want to be responsible for these tax cuts… but we can be thoughtful and responsible and get the money back into the hands of the Hoosiers.”