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Indiana House passes bill to cut corporate tax rates

April 21, 2011

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Government, Government & Economic Development, State Budget, State Government, Taxes

Indiana's corporate income tax rate would be cut by nearly 25 percent over the next four years under a plan the Indiana House has approved.

The House voted 62-34 Thursday for the bill to incrementally reduce the corporate tax rate from the current 8.5 percent to 6.5 percent in 2015.

Bill supporters say Indiana's current rate is among the nation's highest and argue that it discourages businesses from coming to the state. Democrats argued it's not right to help the very richest in society as others suffer from state budget cuts.

The full tax cut is estimated to reduce state tax collections about $80 million a year, but could lead to more tax collections if it spurs more business. Legislators expect to make up that revenue by starting to tax the interest on out-of-state bonds held by Indiana companies and residents.

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response....

JimApril 23, 2011 3:13 PM
hmmmm,..i'd be curious to your reaction to last week's news,then? you know, the news that ge paid ZERO dollars in federal income tax after shedding nearly 20% of it's work force in the last 3 years? didn't the article say "democrats agrued it's not right to help the very richest in society?" i'm certain you must be furious? i mean after all, isn't jeff immelt close buds with barry soertoro? doesn't he sit on some blue ribbon commission of barry's? nah, there can't be any coincidence in that. even after ge donated millions of dollars to barry's campaign over the last 5 years and barry funneled millions of dollars of federal contracts to him.....can't be anything nefarious going on. nothin' to see here folks, just move along. what kills me and frightens me at the same time is, people wouldn't recognize blatant marxism even though it's smacking them in the face on a daily basis. oh, and, by the way, i thought george bush was an idiot.

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Here Is Some Data

Business Development GuruApril 22, 2011 9:14 PM
Given the amount of money that the majority of Indiana corporations bring into the state, this tax reduction will only hurt Indiana citizens. It is not the tax rate that is keeping businesses from moving here (Please IBJ... do some fair balance reporting). And back it up by the smart people who don't have a conflict of interest in the article. http://en.wikipedia.org/wiki/Corporate_tax_in_the_United_States.

However, the actual new rate of 6.5 puts Indiana among other states in the neighborhood, which seems realistic.

At the end of the day... what good is driving a nice car in Indiana when the streets are falling apart from lack of money to fix them? Same goes for the "quality of living" in this state. Average salary $36K? +/- $5K... Highest crime among cities in USA, crappy water, etc...

I doubt a lower tax rate is going to entice companies to want to build business here.

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These guys....

JoeApril 22, 2011 8:09 PM
What jokers, corporate taxes were low before the recession and during the recession and all we hear about are no jobs...let's lower them more!

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Corporate Welfare

hcbrandApril 22, 2011 3:22 PM
While the conservatives continue to defend tax cuts with the analogy that the rich and the corporations need the breaks to create jobs, it seems like we should be drowning in employment by now, doesn't it? Maybe this one more tax break is all they need...

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Good news

JodyApril 22, 2011 2:39 PM
Now Indiana corporations can spend more money on low paying outsourced jobs out of the country and pocket the difference to pay CEOs huge salaries so they can buy real estate property in the Dominican Republic. Love it. Thank you Republicans. And you good unemployed voters out there - keep pulling that Republican lever.

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Facts

Dear IBJApril 22, 2011 1:28 PM
I think it would be a valuable service if journalists would start asking their sources to explain their factual assertions. For example, instead of just stating "Bill supporters say ..." shed some light on the basis for the assertion. In this case, it would be helpful to know what some other comparable states' corporate tax rates actually are.

Too often, I think, nowadays, the chasm between opposing sides of an argument is fueled by the lack of anyone asking for facts to be substantiated.

Emotionally-charged assertions are exchanged and simply assumed to be true by those who already support those positions, and the only thing accomplished by the exchange is further entrenching of already-formed opinions.

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History?

BRYANApril 22, 2011 11:47 AM
Jim, you speak of Liberal hatred when your own post drips with hate. Furthermore, don't you think it is a bit disingenuous to base your entire argument on one fiscal year? You seem to forget that George Bush only created 2.5 million jobs during two terms as President. Those Bush Tax Cuts were supposed to create millions of jobs. Yet, the reality is that they helped to ballon the debt and deficits in this country and ended up destroying the economy. We went from a surplus to a deficit due to unpaid for wars and unpaid for tax cuts for the rich. While Liberals are accused of class warfare Republicans engage in it every day.

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some need to study history....

JimApril 22, 2011 9:45 AM
this class warfare nonsense that the liberals have created is absurd. here's an interesting statistic for you libs and i know it's going to blow your minds and you won't be able fully digest its implications.....in 2006, 3 years AFTER bush enacted his tax cuts, the US Treasury recorded its HIGHEST level of income from taxes in HISTORY that year!!!! so, don't give me this idiotic sob story of the rich "don't pay their fair share". it's childish, absurd and has ZERO basis in reality. however, i guess when you're spoon fed a steady diet of liberal hatred your entire life, it's difficult to accept everything you've been told was a con-job........

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Of course...

MarcusApril 22, 2011 9:44 AM
One important point to raise is that the corporate rate is paid mostly by small- and medium-sized Indiana corporations. Corporations that aren't domiciled here already pay much lower rates. Of the 20,000 C-corps in Indiana, roughly 16,000 have fewer than 100 employees. This is a small business tax cut. Want more proof? Elsewhere in the bill, the Net Operating Loss carryback is eliminated. NOL is one of the many "tax loopholes" that allow corporations to reduce tax liability with their losses in other tax years. The removal of NOL carrybacks hurts large corporations far more than small ones.

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cart before the horse

RickApril 22, 2011 8:17 AM
I understand the idea that a corp.tax break will somehow increase enployment. But what if it doesn't? Next year? The year after? When??? If everything else remains unchanged, the result is another tax break for corp's that should have been paid. Totally wrong to reward this type of behavior before the increased employment comes.

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What a Joke

ReallyApril 22, 2011 6:40 AM
I am sure they will find a way to pass this on to the average joe. This is ridiculous, they continue to talk about how cuts need to be made because there is no money but yet we give even larger breaks to a large source of income. So what are these companies going to do for the State of Indiana to help counter balance the loss of revenue ? Oh...thats right, we are not supposed to think about that.

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Tax the poor..support the wealthy

Ben Del VecchioApril 22, 2011 12:48 AM
Thats the conservative way it seems...
cut taxes for the rich
And let the poor pay
(IE Robin Hood in reverse)

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ironic

tamaraApril 22, 2011 12:08 AM
Just watched a show on History Channel called "The 7 Deadly Sins this one being on GREED! I am not at all religious but found this episode to be very enlightening. Gave new insight to the Great Depression in the late 1920's guess people don't learn from history no more, hope everybody is ready for this one!

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Cut Corporate Taxes

Ron KriegApril 21, 2011 11:40 PM
The United States and Indiana may have the most unfair tax system that exists, GE pays no taxes and we think it is fair to cut big money taxes again, the middle class takes another hit --AGAIN--

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