Answer: $24 million.
Question: What is the cost of the additional corporate tax cut for Indiana in the year 2018?
Unfortunately, Jeopardy! is not just a game. It is also the state of being for Indiana’s current budget. As a reminder, under Gov. Mike Pence, two separate tax rate cuts were enacted, the first in 2013 and the second in 2014. These provided for incremental cuts for corporations continuing through 2023—meaning that more are still scheduled.
The cost for 2018 is $24 million; the total cost over 10 years is just over $2.1 billion. And let’s not forget: Although a tax cut may be a loss on the revenue side of the budget, it is still a “spend” when we think of policy priorities.
Recent news has highlighted the troubles that Indiana is having with the Department of Child Services [Indiana’s struggling child welfare system to test Holcomb, IBJ.com, Dec. 24]. The Indiana Legislature has driven extra dollars into the DCS budget for new caseworkers, but we still have only two of 19 regions in compliance with state statutory requirements. Indiana’s children are the victims here, and as a member of the State Budget Committee, I have called on DCS and the Budget Agency to explain what is going on.
Where could we spend $24 million? Let’s ask former DCS Chief Mary Beth Bonaventura.
Sen. Karen Tallian, D-Portage