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.
on Facebook & Twitter
Back to Top
IBJ Conversations
1 Comments
Add Comment
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.