Gov. Eric Holcomb wants Indiana to match the lowest individual income tax rate of any state that has one in the country.
Holcomb Thursday unveiled specifics on the tax cuts he’d like to see enacted this session – and that includes eventually lowering the personal income tax rate to 2.9 percent.
The governor, who had long been resistant to major tax cuts this year, said Indiana has the financial flexibility to help Hoosiers struggling with rising prices.
“I can give you a long list of inflation that is hitting folks," Holcomb said. "So, now is the time – because we can, we should.”
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Holcomb’s other tax cut proposals largely match what House Republicans have proposed all session – eliminating utility taxes levied on ratepayers and reducing taxes that companies pay on new equipment.
Senate Republicans have balked at making cuts now, preferring to wait for a broader discussion in next year’s budget session. But Senate President Pro Tem Rodric Bray (R-Martinsville) said his caucus will probably support some cuts.
“Like in any negotiation, no one probably gets everything that they want," Bray said. "And we’re going to land in a spot that’s really good for the state of Indiana.”
Holcomb’s proposed individual income tax cut would be phased in over seven years and eventually cost the state $900 million in revenue per year.
Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.
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