The question will be whether Marion County voters are willing to approve a 0.25 percent income-tax hike to pay for expanded mass transit.
Indiana lawmakers are debating ways to give money back to local governments—money that already belongs to cities, towns and counties but the state has been holding in reserves.
A future 5 percent cut in Indiana's individual income tax rates is being added to a legislative proposal that would boost gasoline and cigarette taxes to increase road funding.
Attracting higher-wage residents is key to future growth as city revenues have stagnated and local governments have become increasingly reliant on income taxes. Republican Chuck Brewer and Democrat Joe Hogsett are proposing ways to bolster Indy neighborhoods.
The case has widespread implications for pro athletes and cities with sports franchises that tax visiting players’ incomes. It’s rooted in part in a challenge brought by former Indianapolis Colt Jeff Saturday.
Sales tax is Indiana’s largest source of revenue. But it is tied to consumer spending, and Americans have become increasingly reluctant to spend as median incomes have remained virtually stagnant over the past 30 years.
The state Department of Revenue says a special investigations unit discovered more than 39,000 returns relying on identity theft to falsely claim $39 million.
Politicians in Indiana and other states hope tax cuts for businesses will boost their economies, but those and other moves could be contributing to the income gap limiting growth in U.S. consumer spending.
The proposed switch in accounting methods could create cash-flow nightmares for medical-service providers, accounting, engineering, consulting and other professional-services companies with revenue over $10 million.
The Indiana House Ways and Means Committee is expected to vote Monday on a mass-transit bill and is considering an amendment that would require 10 percent of revenue to come from non-traditional sources.
Mayor Greg Ballard’s chief deputy has spent the past six months telling community and business leaders that the city simply cannot cut its way out of its revenue problems; it also needs to attract more people to live within city boundaries so they will pay their income tax to Indianapolis.
Growing ranks of dropout workers have nagged the economy throughout its recovery, and now Indiana’s budget forecasters feel they can’t ignore the trend. They recently revised their outlook on state revenue downward, partly because so many Hoosiers stopped looking for jobs.
The proposal from Republican leaders would make small companies exempt from tax on business equipment, and cleave the state’s corporate income tax to the second-lowest in the nation.
Arthur Laffer is reviled by the big-government crowd for blaming high tax rates for slow economic growth. He’ll discuss his cautionary tale for states while in Indianapolis next week.
During a committee meeting Tuesday, Sen. Brent Waltz and Rep. Ed DeLaney crossed swords on a proposal that included widening roads and reforming the IndyGo bus service.