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Indiana senator set to propose lower corporate tax

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An Indiana senator wants to lower the state's corporate income tax from 8.5 percent to 5 percent.

Republican Sen. Brandt Hershman of Lafayette, who chairs the Senate Tax Committee, says Indiana already has a relatively low cost of doing business, but that the corporate income tax is seen as a hindrance to job creation because it is one of the highest in the Midwest. He says lowering the corporate income tax would make the state a more attractive place for companies.

Hershman told IBJ in December that he planned to file a bill to lower the corporate tax rate, but at the time was still uncertain about how much of a cut to propose.

The nonpartisan Legislative Services Agency is working to determine how much the state might lose if it lowered the tax rate. Hershman says there will be an up-front cost to the state but believes other parts of the legislation can help offset that price tag without raising taxes elsewhere.

Indiana only weighs a single factor—a company’s sales—in the formula that determines the income taxes the company pays. But the state’s 8.5-percent rate exceeds that of neighbors such as Illinois, Ohio, Kentucky, Michigan and Wisconsin.

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  • Lower Than China?
    How much more can you
    lower corporate taxes,
    raise corporate incentives, and,
    essentially,
    give away the store?

    Keep this up and maybe a reduction of the minimum wage will be in order to compete with foreign competition.

    How low can we go to sell out, create
    waste, sprawl, and abuse of our citizen workers and our environment?

    How about proposing an individual income tax elimination and home property tax elimination for 5 years? The economy would boom!

    Corporations have had their bail-out.
    Sen. Hershman and his
    partners-in-corporate-caretaking
    may want to visit some homes around Indiana
    before attending their next Chamber of Cocktails fundraiser.

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  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

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