...
As noted in the recent report, “Policy Choices for Indiana’s Future,” “Indiana’s seven percent sales tax is high, and proceeds from the sales tax are now the largest component of state revenue” at 47 percent.
The report, a white paper prepared by the Indiana University Public Policy Institute, also recommended including services – not just goods — in the sales tax base. Although controversial, that idea would allow the state to reduce the sales tax further.
Indiana’s tax climate is rated healthy by most economists, and our individual tax burden – as ranked by the Tax Foundation – is 25th, smack dab in the middle.
Gregg and Pence are both right when they say it could be better still. By cutting the sales tax, they could achieve their goals and nudge Indiana closer to the median. The top spots in a tax ranking are never a good place to be.
See the full editorial here:
