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.
Facing pressure to boost the police force and avoid further cuts in city services, Indianapolis leaders head into the next budget season with open minds about a tax increase.
The state revenue forecast due out April 16 will influence the next two-year budget and possibly help Gov. Mike Pence sell lawmakers on his proposed 10-percent income-tax cut. Experts predict the numbers won’t be much different from those in the last forecast.
Indiana lawmakers and Gov. Mike Pence drew closer to a budget compromise Thursday with the unveiling of a $30 billion Senate plan that cuts the state income tax by $150 million and establishes a new roads fund.
House Speaker Brian Bosma says a national tea party group’s “erroneous” campaign ads have made it harder for lawmakers to support Gov. Mike Pence’s proposal to cut Indiana’s income tax by 10 percent.