Who is going to scoff at $222 (for married couples) or $111 (for those who file individually)? Who wouldn’t stop to pick up $222 they saw on the sidewalk, and get very excited while doing so? For many people, this is a chunk of change that will substantially change their financial
situation next year. For others, it’ll pay for a nice dinner at St. Elmo.But don’t be confused. This is not found money, and it doesn’t land back in Hoosier pockets without a cost. Every dollar the state sends back to taxpayers is another dollar that won’t be invested in, say, early childhood education. The collective cost of the refund — roughly $360 million — will make it harder for the state to address many of its shortcomings when lawmakers convene in January.
The refund news comes just weeks after the election of Daniels’ successor, Mike Pence, whose fluffy campaign centered on an unnecessary promise to reduce the state’s income tax rate by 10 percent, a promise that will make it more difficult for the state to tackle big problems.
And it’s hard to deny that the state has big problems. Just ask the Department of Child Services.
This all leads to an important question, one I’ve asked before: Is anybody out there really complaining about Indiana’s 3.4 percent income tax rate? Seriously, when’s the last time you heard someone say that the state’s flat tax — applied to income after all sorts of deductions and exemptions — was out of hand?
Think about that number — 3.4 percent. That sure seems like a fair price for all of the services a state provides, even when you factor in other state taxes we all pay. After eight years of Daniels as governor, if nothing else, it’s hard to find many people complaining about overspending, or overtaxing.
...
In the end, it’ll be nice to receive $222 from the government. That will pay my Starbucks bill for a month or so. But I look forward to the day when someone at the top of our state’s government tells Hoosiers the truth.
And here is that truth: Our tax rates are reasonable, and our problems are daunting. A refund sounds good, but investments
in our state would be more worthwhile.http://www.indystar.com/apps/pbcs.dll/article?AID=2012121129045
