Holcomb proposes $1B refund for Indiana taxpayers

Keywords State Government / Taxes
Gov. Eric Holcomb

Gov. Eric Holcomb announced a plan on Thursday to call a special legislative session at the end of June and propose that $1 billion in state reserves be returned to Indiana taxpayers.

Each taxpayer would collect about $225 under the $1 billion plan. That would be in addition to $125 that each taxpayer is set to receive this year from the state’s automatic taxpayer refund.

Holcomb’s announcement came directly on the heels of a state revenue report for May, which showed revenue was $209 million higher than the state’s forecast. For the 11 months of the Indiana fiscal year, which ends June 30, revenues are $1.075 billion over forecast.

Holcomb has taken fire in recent weeks from Democrats asking him to temporarily suspend the state’s gas tax to provide fiscal relief for Hoosiers. He replied that he’d rather provide relief for all Hoosiers, not just those who buy gas, and that he wanted to see May’s revenue report before deciding how.

“Hoosiers have real needs right now during this period of high inflation, from the gas pump to buying groceries, and everyone should benefit from the state’s success,” Holcomb said in a media release on Thursday morning.

In a separate release, Senate President Pro Tem Rodric Bray, R-Martinsville, did not indicate whether he supported the proposal, but said he recognized Hoosiers needed relief from inflation.

“Thanks to Indiana’s continued fiscal prudence, we can consider providing some relief to Hoosiers who are trying to adapt to today’s challenges by returning some of their hard-earned money back to them,” Bray said.

Once the Legislature is called into special session, lawmakers are free to pursue any issues they choose with no limit on how long they can stay in session.

Many members of the Republican-dominated body called on Holcomb earlier this year to call a special session if the Supreme Court of the United States makes a ruling that strikes down Roe v. Wade or otherwise opens the door for states to ban abortion. It’s unclear when the high court will announce its decision, although court watchers expect to see a ruling in June or July.

Holcomb has said he was considering the option of calling a special session in that instance, but that he would not make a final decision until an official ruling from the court is released.

The $125 automatic refund was triggered last summer after the state ended the last fiscal year with nearly $4 billion in reserves, which was $1.2 billion more than expected.

Refunds were to begin in May through direct deposit for residents who provided their banking information on their return when they filed their 2021 income taxes. Direct deposits are expected to continue through July.

For those who did not include banking information on their returns, paper checks will be issued beginning in late July and continue through August, with the goal of completing the refund statewide by Sept. 1.

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57 thoughts on “Holcomb proposes $1B refund for Indiana taxpayers

    1. 4 fill ups? Today it is maybe 3…tomorrow maybe 2 tanks of gas. Today, that same $225 is just one trip to Kroger. Ugh.

      There are far better options than what Holcomb is proposing:

      1. I agree, why not use that $1B to increase teachers’ pay.
      2. How about spending the $1B on enhanced security technology, security equipment and CapX in ALL of our public schools?!
      3. Save the refunds for the lower and middle classes. Above a certain income threshold, no refund. Give it to those who need it the most.

      But please remember…with Holcomb’s $1B “feel good” refund to taxpayers…don’t lose sight that the expected reserve total by June 30th is $6B. So, our Governor can certainly widen his reach of generosity by either suspending the gas tax or discounting the gas tax for Indiana taxpayers. Governor Holcomb…You can do better!!!!!

    2. Great. That’s $1B which the gas companies will set their caps to acquire. The only thing Biden did wrong was announce the sanctions against oil. The gas companies are showing *phenomenal* profits ALMOST *record* profits every months since the sanctions were announced. They even announced they had no intentions of lowering the prices and would instead pass the profits off to their shareholders – most of whom are…the people running the companies. It’s like the inflation. The CEOs are jacking up the prices because they know they’ll just get more profits and they & the other shareholders will make money from it…and knowing full well Biden will get the blame for it. You think Donald T. Rump would have handled both situations differently? Of course he would. He’s would have negotiated with Putin for all Americans to receive free Russian lessons. His great success in the primaries? He’s endorsing a *lot* of unopposed candidates because those are easy ways to pad his Win/Loss stats. Georgia being a sham primary because, “no one legitimately gets 70+% of the vote”? Well, let’s look at the 2016 Republican primaries. Rump received 70+% in California, Montana, New Jersey, New Mexico, Washington, and West Virginia. Perhaps he *wasn’t* the true Republican candidate with that many 70+% wins!

    3. right phillip make it about trump. yawn.

      got news for you – they are all crooks.

  1. Exactly! Pay the teachers more. Fix our horrible roads. Fund mental health. Save more for the future. Keep the dollars and use them wisely. This refund is not as impactful as it is being presented.

  2. Worthless Pols, they can’t find a single problem worth $1B in the entire state worth fixing?

    Next time a kid dies in a school, or a foster child doesn’t get the help they need, or a pothole pops your tire, or the road construction gets delayed – here’s your problem.

    1. With these two tax checks, I’ve almost paid for the tire that was ruined on Indiana’s roads.

    1. Investing that money in education and workforce development will go a lot further.

  3. The democrat governors closed most of the mental hospitals, wanting them for more prison space. This is why a lot of folks shouldn’t be out, and forced to take meds for mental illnesses.
    And one entrance schools are safe, unless a teacher leaves another door open, like in Tx. Sorry sad fact.

    1. Doug, they retracted the story that the teacher left the door open in TX. She closed it when she came back in, but it failed to latch properly.

    2. One entrance schools are safe when the fire alarm goes off? Rafael Cruz might have given you that idea but he didn’t think ahead very well.

  4. $225 or even $375 including the automatic $125 pay out does virtually nothing for me or for most Indiana tax payers. Lower income folks, yes.

    I agree with most of the comments above. There are very constructive things that can be done with the excess surplus:
    * Increase Teacher pay
    * Increase security in schools
    * FIX THE ROADS (for heaven’s sake)
    * Fund mental health (for a change)

    Maybe give a refund to lower socio-economic groups who would actually benefit from it, and put the rest towards the above needs.

    1. half the lower income would benefit and half would spend it on junk.

      none of them paid for it. give it back to the people who paid it.

  5. What’s the old expression about people who would complain about not being hung with a new rope?

    I’m no big fan of Holcomb, but this idea sure beats giving gas tax relief to everyone who buys gas in Indiana but doesn’t live here. At least this money is only going to Hoosiers.

    If the gas tax is 15 cents/gallon (I’m not sure what it is), that’s $3 savings on a 20-gallon fillup. Use the $225 you get to pay (save) “the gas tax” on at least 75-odd tanks of gas; is that enough? How many tanks of gas do you use, for Pete’s sake? If Holcomb would suspend the gas tax for three months, would you use 75 tanks of gas in three months?

    The idea here, you fiscal geniuses, is to provide inflation relief, not decide what to fund and what not to fund. Geeze, people…what would you post if Holcomb announced, “We aren’t going to provide Hoosiers with any inflation relief, but we’re gonna spend $1B on road improvements instead?”

    And no, he should not deny that relief to “millionaires;” if you want to live in a socialist country, move to Venezula and see how wonderful it is….or keep voting Democrat and wait a few more years!

    1. Bob, you are such an easy target. I’ll pick just your last point. Targeting the relief to lower income people is in the same vein as just about every tax policy that is in place, such as a graduated income tax rate, caps on who gets to take an IRA deduction, etc. It’s not socialist.

    2. Who said I was in favor of “just about every tax policy that is in place,” Randy? Two wrongs don’t make a right…and multiple wrongs still don’t make a right.

    3. Actually, “Socialist” is the wrong word. You are using it incorrectly. Which proves a point for more socialist programs like public education. We should spend it on better education so people stop arguing over words they do not understand.

  6. School transportation is going to be hurting in the fall if gas prices don’t drop. If something isn’t done to help gas prices as others have mentioned, then save this money for possible use on critical state issues such as helping schools offset the high cost of gas this fall for busing.

  7. How about taking a small portion of this surplus and spending it on a new school security training center where all school resource officers get trained and recertified? Also consider establishing state standards for school security and funding a school hardening program.

    1. Good Idea, but how do you fix the 20,000 gun suicides per year, and the 2,000 accidental gun deaths per year, or the 25,000 other gun related deaths per year that no other country seems to suffer from?

      By hardening schools you just moved the goal post to the 49 yard line. Maybe you need to get the root of the problem?

      Republicans; actively supporting school shooting (and overall gun violence) since 2004.

    2. So, Dan M, is the solution for us all to disarm and be at the mercy of armed criminals and the government? You forgot to mention that thousands of lives are saved each year by armed citizens. For every one homicide committed in the United States with a gun, at least 266 lives are SAVED with a gun. Don’t believe me, check it out for yourself.

    3. Hmm…. The numbers don’t seem to bear this out. I think you have the numbers reversed I could believe for every 266 murders 1 person was saved by the good guy with a gun.

      BTW here is a link that backs up the numbers I gave.

      But you missed the point. Hardening Schools will not fix the gun problem and while you may prevent some incidents, you have not addressed the reason the incidents happen with such frequency ONLY in the US.

    4. Hmm…. The numbers don’t seem to bear this out. I think you have the numbers reversed I could believe for every 266 murders 1 person was saved by the good guy with a gun.

      BTW here is a link that backs up the numbers I gave. https://usafacts.org/data/topics/security-safety/crime-and-justice/firearms/firearm-deaths/

      But you missed the point. Hardening Schools will not fix the gun problem and while you may prevent some incidents, you have not addressed the reason the incidents happen with such frequency ONLY in the US.

  8. Fix the roads! Not just repave but add real drainage so they last more than 5 years. I am no screaming leftist but roads are a joke in Indiana.

    1. But using everyone’s money to fix roads that I don’t drive on is socialism!!

  9. And once again, the REALLY poor and those on the smallest fixed income who don’t even make enough to pay taxes, but have to buy gas and groceries like the rest of you, get left out.

  10. What good would that do? I just spent $5.22 per gallon or about $50 for 10 gallons of gas this morning.
    For every person that voted for Joe Biden and the Democrats… well being a Christian, I can’t say what I was just feeling.
    Holcomb, the RINO is not to blame but he isn’t helping
    If we start getting “black outs” in this state, you won’t see another Democrat win an election in our lifetime.

    1. who needs democrats? the GOP is doing a fine job of raising taxes and increasing gov’t all by themselves!

    2. If you think things would be much different with a Republican in charge you’re fooling yourself. Well, I guess Trump would have rooted for the Russians to win in Ukraine, saying we’d rather have cheap gas than freedom. Not very American, though.

      Republicans preached austerity during the 2008-2009 slowdown and prolonged the slowdown. I doubt they’d have a solution other than fooling some of y’all that trickle down economics, is another tax cut for the rich, would help.

      Democrats went with the spend approach and spent too much. It’s really easy to complain that it was obvious they were going to spend too much, but a lot of the same folks who said too much was spent in 2021 also said that too much was spent in 2009 and they were wrong then.

      Myself, I’d rather they reduce wages by fixing immigration and increasing the pool of workers but … what do I know? You can whine about which side is more bad but they’re both bad in a lot of ways.

  11. If Holcomb is looking for short term boost in popularity, help fix the city streets. For the long term, invest in education. The small amount of the distribution to all taxpayers would be like spitting in the ocean and expecting a rise in sea level.

  12. If Holcomb is looking for short term boost in popularity, help fix the city streets. For the long term, invest in education. The small amount of the distribution to all taxpayers would be like spitting in the ocean and expecting the sea level to rise.

  13. Giving it back to the people is the most fair choice. There are many Hoosier tax payers who don’t have children or drive cars. If you’d like your share of money to go back to the teachers who educate your children or to the lowering of the tax on the gas that fuels your car, feel free to donate it back to those causes. As a childless person living a car-free lifestyle, I don’t see it as my responsibility, necessarily, to subsidize those things (which, of course, I do simply by paying taxes).

    1. I assume you are not a shut-in, so you either walk, ride a bike, take public transit, or use a cab or Uber. So, you are using the public transit infrastructure and taxes do pay for sidewalks, bike lanes/roads, public transit, etc. So, the money could be given to cities/counties to use on a wide range of infrastructure. You also drink water and breath, and the state regulates companies that would otherwise pollute your air or water and helps build infrastructure that keeps your air and water clean. So, when you leave this earth, then you can get a free one way ticket out of here. Until, then, the $1 billion can be put to much better use than to fund political grandstanding by Holcomb and the Nation’s Worst State Legislature.

    2. Well, you better hope someone is paying to educate the doctor you go to, the dentist you go to, the plumber who fixes your pipes, the people who build your house etc..Or is that just socialism, again?…

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