From the Northwest Indiana Times:
New details about Gov. Mike Pence's proposal to increase the amount of personal income exempt from state tax reveal the plan is far less generous than originally assumed.
Despite repeatedly noting in speeches across the state that both Indiana's $1,000 personal income exemption and the $2,500 per child exemption haven't gone up for decades, the Republican governor won't ask the Republican-controlled Legislature to boost either of them.
Instead, Pence administration officials explained Monday the governor only will propose raising the exemptions each year to match the rate of future inflation.
"It may be that we look to increase at some point in the future, but the fiscal impact of increasing it any significant amount is fairly significant, so at this point we're just looking to index to inflation going forward," said Andrew Kossack, general counsel at Pence's Office of Management and Budget.
The U.S. inflation rate from November 2012 through last month was 1.2 percent, according to Bureau of Labor Statistics.
If Pence's indexing proposal already were in effect, the amount of income exempt from tax this year would have grown $12 to $1,012 for individuals and $30 per child to $2,530.
However, the actual taxes owed at Indiana's 3.4 percent income tax rate only would have dropped 41 cents for an individual and $1.02 per child.
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http://www.nwitimes.com/news/local/govt-and-politics/hoosiers-would-see-minuscule-benefit-from-pence-income-tax-plan/article_864fce41-abf0-5632-8863-91c1feebcc94.html
