IBJNews

Indiana senator set to propose lower corporate tax

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

  • 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.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

ADVERTISEMENT